I guess it’s safe to do my happy dance now that I’ve locked in a big win on this USD/CAD short! If you’ve wondering what I’m talking (or dancing) about, make sure you look at my initial trade idea and adjustments first.
As I’ve mentioned in my latest update, I’ve trailed my stop slightly below entry to minimize my exposure to event risks. Since the pair also got a boost from rumors of an output freeze deal between Saudi Arabia and Russia, I decided to adjust my target slightly lower to press my advantage.
However, traders didn’t seem willing to push USD/CAD any lower after seeing downbeat U.S. retail sales and PPI readings, as these reports brought a bit of risk aversion back to the table. In addition, it also seemed as though market junkies were booking profits off their Loonie longs in anticipation of potential jawboning from the BOC. Because of that, I thought it best to just take whatever profits I had and walk away.
And with 250 pips in the bag, I ain’t complaining!
Even though price dipped to lows around the 1.2750 area and I could’ve scored a bigger win, I’m still happy with my decision to exit early at 1.2825, which happened to be at my original profit target anyway. This was enough to give me a 1.25-to-1 return-on-risk. Here’s how it turned out:
P/L: 250 pips / +0.62%
Hopefully I’m able to follow this up with another good trade. Got any ideas you’d like to share?
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