It looks like I took what I could from the AUD/USD move lower so I decided to take profits ahead of the weekend. Here’s a quick forex trade review!
Original Trade Idea: Forex Trade Idea: AUD/USD Short
Since my last update on the trade yesterday, there was one more pretty weak attempt at breaking below the .7000 handle with no luck. With no new big catalysts or broad sentiment moves today, AUD/USD pretty much went no where quickly.
Ahead of the Friday close, I decided that this was a pretty good move for the week and it made sense to avoid weekend risk with a decent profit already gained, so I decided to close the short trade manually at .7030 for a small profit:
Total: +140 pips/+0.35% gain
Overall, it was my usual Fibonacci setup with a guess that risk sentiment would go in risk-off mode–and luckily, it worked out well this time. I probably could have set my orders higher to maybe the 61% Fibonacci area (.7236) to improve my cost basis, but at the time, the combination of the 50% Fib and 200 SMA looked like a great entry level already. All-in-all, it was a great trade that required a little patience, but paid off well.
Thanks for checking out my blog and I hope it helps with your own trading development. Have a great weekend!