Forex Trade Review: EUR/AUD Double Top

Why, Draghi, why?? Just when I thought EUR/AUD would make it all the way down to my profit target, the ECB press conference took place and sparked a sudden forex reversal. I’m about to vent my frustrations in a bit, but make sure you check out my initial idea and latest update first.

I was already feeling pretty giddy upon hearing about the fresh batch of stimulus efforts from the ECB and seeing the euro drop like a rock after the announcement, so I took a quick break to do my happy dance when EUR/AUD was already just a stone’s throw away from my PT at 1.4425.

Still, I trailed my stop a bit lower to 1.4925 above the short-term falling trend line just to lock in more profits. At that time I was thinking that Doomsday Draghi’s remarks during the press conference would push the shared currency much lower so I wasn’t too concerned.

But we all know what happened next…

EUR/AUD 4-hour Forex Chart

EUR/AUD 4-hour Forex Chart

Price reached a low of 1.4467 before suddenly whipsawing higher, taking out my adjusted stop to 1.4925 in the process. As it turns out, Draghi mentioned a little something about having no plans to lower rates much further in the near future. Argh!

While I’m patting myself on the back for trailing my stop lower, I guess I’m just bummed out by the fact that I came really close to knocking out a big win with this short forex position only to have the profits slip away.

Note to self: Don’t do a happy dance until a trade is closed in the green. And don’t underestimate Draghi’s penchant for surprises.

Then again, a win is a win. I managed to lock in 110-pip gain for a teensy 0.10% profit on my forex account. It could’ve been a 0.75% win without that reversal, but it would’ve actually turned out to be a breakeven trade had I not trailed my stop… so, yay me!

How about you guys? Did you have any euro trades during the ECB statement?

Cheers,

Happy time

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  • JohanMartens

    Well, I had a nice trade going on via the daily chart, where the price was nicely approaching my TP target of 1.4345. And then Draghi came in.
    I think the secret service of the ECB is watching us, and must have tipped him off 😉

  • luis reis

    nice trade, although.
    these big events , sometimes are good sometimes are bad, wouldnt be better and sfer to close the trade before these big events/announcements?
    and how can we explain a strong EUR with low interest rates?

  • ejikeze17

    i trailed the entire down and up by 50pips on high leverage and some high risk cash with a very close watch (guess thats where u goofed lol) well i was able to cash in some cool $8k thanks to draghi