With one forex setup in the green and another stuck in consolidation, I’m thinking of making some adjustments to my positions. Here’s my game plan.
As I’ve mentioned in my earlier forex trade updates, my short position at 79.75 got triggered but it doesn’t look like the pair is going anywhere anytime soon. Japan’s latest GDP reading isn’t doing my trade any favors since the report indicated that the country is back in recession. Now that can’t be good for the upcoming BOJ statement later on this week so I’ve decided to exit early at 79.90 for a 15-pip loss and a tiny dent on my account.
My USD/CAD long position is slight in the green with a 50-pip lead, and the pair seems to be nearing the channel resistance at the 1.3450-1.3500 levels already. Data from the Canadian economy has been mostly weaker than expected, putting downside pressure on the Loonie, while the U.S. dollar is able to benefit from the risk-off environment.
I’m a bit worried about the sudden bounce in oil prices spurred by expectations of lower oil output due to the conflict in Syria, but I’m thinking that this pair could carry on with its climb. I want to adjust my stop higher but the current price is still close to my entry so I’ll just be keeping a close watch on this instead, ready to exit if a long red candle forms.
Also, I’m on the lookout for another forex trade setup this week and I’m leaning towards taking a short euro position. Got any ideas you’d like to share?
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