Forex Trade Review: EUR/AUD Downtrend Retracement

With a major event risk lined up, I’ve decided to lock in my gains on this short EUR/AUD forex position. I’ve moved my stop to entry earlier this week but I just didn’t want to risk losing my current profits in case the RBA announcement doesn’t go in my favor. A win is still a win, right?

Oh, if you’re wondering what I’m talking about, don’t forget to check out my initial EUR/AUD trade idea here.

As I mentioned earlier, the RBA rate decision might wind up erasing my recent gains, as the central bank is likely to either cut interest rates or give off a very dovish vibe. Forex Gump pointed out that the largest commercial banks in the country already made mortgage rates adjustments, possibly to give the RBA room to lower the benchmark rate.

Now this reminds of me of a similar scenario wherein the financial authorities in New Zealand made home loan adjustments prior to the June RBNZ decision, which then marked the start of their rate cut spree this year. With that, I thought best to just walk away with my account gains instead of leaving it up to chance.

EUR/AUD 1-hour Forex Chart

EUR/AUD 1-hour Forex Chart

I had a pretty wide stop on this one so I was able to chalk up a 0.35% profit or a 0.7-to-1 return on risk with this position. Not so bad for a short-term trade, huh?

I’m still very bearish on the euro so I’m still open to the idea of re-entering this short position later on. Got any trade setups on other comdoll pairs you’d like me to look at?

Cheers!

Happy time

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