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.
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!
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