Forex Trade Update: Another EUR/AUD Retracement

So far, so good! It looks like my second attempt at shorting EUR/AUD is faring much better than my first, as I decided to enter at market prior to the ECB announcement. When Governor Draghi announced that they would conduct asset purchases of 60 billion EUR per month, EUR/AUD dropped like a rock to the 1.4100 area.

EUR/AUD 1-hour Forex Chart

EUR/AUD 1-hour Forex Chart

My initial profit target at 1.4000 is still more than a hundred pips away and I’m considering adding to my position now that the ECB’s policy decision could mean more downside for this pair. Event risks for the upcoming week include the Greek parliamentary election, the Australian CPI release, and euro zone CPI estimates.

For now, I’ll be moving my stop to entry for a risk-free trade and I’ll be adjusting my profit target lower to the next major support at the 1.3800 mark. Do you think I should add another position on a break of 1.4000 or would that be too greedy?

As always, I’d love to know what you think!

Cheers,

Happy time

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  • Kingbar

    Hello Comdoll,
    Thanks on your analyst of this pair. I am closely watching this pair and it seems to find support at 1.4062 level or 1.4003. If those supports are broken then we could see a retest of 1.3803 level. It is going to be fundamental news that would the bears to retest that level.

    • Glad to know we’re on the same boat! Seems that the 1.4000 area is still holding so far and I’m waiting for more data to see if a break is possible, although the recent Greek elections and ECB QE suggest that further downside can be seen.

  • Kingbar

    I will suggest you wait until it test the next support which is 1.4003 before move the goal post to 1.3800 and adjust your stop loss to lock in some profit.

    • Bim

      Yes it’s in line with my position too… 1.3800 is realistic target to achieve I supposed 🙂 hopefully

      • Yeah it looks like the next strong support zone so I’m hoping it heads that way. Thanks for the feedback!

    • Thanks for checking out my blog and sharing your thoughts! For now it looks stuck above 1.4000 so I’m trying to stay patient.

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