A little bit of both good and bad luck this week thanks to mixed results among my forex trade ideas. Here’s a quick review and adjustment ahead of the weekend.
Original Trade Idea: Forex Trade Idea: GBP/CHF Range Play
First the “not so good.” The British pound was annihilated this week, likely on a combination of broad “risk-off” sentiment and sentiment then we’re not going to get that rake hike from the Bank of England as soon as the markets previously expected. Whatever the case may be, after triggering my half position buy orders at 1.4925, GBP/CHF made a clean break of the previous support area. It took one more bounce after the break before the real selling began, taking the market to my stop out level of 1.4775 and closing my trade out for a small loss:
Total: -150 pips/ -0.50% loss
Overall, it was a simple setup that just didn’t go my way, and I probably should have closed this trade out early when 1.4925 was retested and held as resistance, as well as the broad GBP sell off against the majors.
Original Trade Idea: Forex Trade Idea: AUD/USD Short
Fortunately, I do have a winning trading idea in AUD/USD that continues to follow the broad fear sentiment driving global market players to lighten up on risk lately. The pair did retest that major .7000, ahead of which I decided to roll down my stop to .7100 to lock in a very small profit. As I write, that bounce higher has turned into another selling opportunity it seems as AUD/USD just made another swift move lower as we head into the Friday Asia session, putting me up around +180 pips at the moment and near my target.
For now, I look to hold my stop at .7100, but I will likely take the trade off ahead of the weekend OR roll down my stop one more time, all depending on Friday’s price action. Stay tuned by following me on Twitter and Facebook!