A great start to the week for me as Cable made the extra move lower to retest strong support and my profit taking orders at 1.5600. Here’s a quick review!
Original Forex Trade Idea: Another Technical Short on Cable
It’s been a while since I put up this idea, but after a week of consolidation, we finally saw some volatility during the U.S. holiday to push Cable up to my short orders at 1.5790. And it looks like I got very lucky this time as the 1.5800 level (61% Fibonacci retracement area) drew in sellers, especially after OPEC decided to leave oil production as-is, sparking oil weakness and USD strength.
The USD rally wasn’t enough to hit my target at the end of last week, but after the open of this trading week, we saw one final push lower to 1.5600, where my limit orders were triggered and closed my trade:
Total: +190 pips/ +0.50% gain
Overall, this was a pretty textbook trade setup and the data last week worked out in my favor. It’s a good thing I took profit at 1.5600 because Cable went into a strong rally mode, especially after the positive manufacturing PMI data this morning. And even though I could have had a bigger profit if I went with my full risk size, I think it was still a good decision to go half because of the central bank meeting minutes that were scheduled not too long after my original idea was posted.
That’s it for now, and since we’re looking at a week heavy with top tier economic data I’m going to take it a little bit cautious for now; no new ideas at the moment but I’ll continue to let my open trades (long NZD/CAD and short AUD/CAD) ride for now. Stay tuned!