Forex Review: EUR/AUD Short

Aaargh, not again! I chalked up another EUR/AUD loss as the pair rallied back to the 1.4850 level today. What the heck happened?!

Before you read the rest of this entry though, make sure you’re up to speed with my trade idea and adjustments:

EUR/AUD Forex Trade Idea

EUR/AUD Forex Trade Update

EUR/AUD Forex Trade Adjustments

EUR/AUD Positions Update

EUR/AUD Daily Forex Chart

EUR/AUD Daily Forex Chart

I was so convinced that the euro would keep dropping like a rock ahead of the expected ECB monetary policy easing next month, that I was unable to make adjustments to account for the recent sentiment change for AUD. As Forex Gump discussed in his article on the 4 Reasons that Could Push the Aussie Down Under, the RBA’s cautious rhetoric combined with the prospect of budget cuts isn’t looking too good for the Australian dollar.

It didn’t help that risk was really off in yesterday’s trading sessions, leading to more losses for the Aussie. Earlier today, the Westpac consumer sentiment release printed another disappointing figure, enough to push EUR/AUD up to my adjusted stop at 1.4850.

Oh well, you can’t blame a girl for trying, can you? I did my best to press my advantage on this setup as I added on the break of the previous 1.4650 lows then adjusted my stop to my initial entry. I can’t help but wish that I just simply trailed my stop instead of adding!

Got any forex comdoll ideas that could help me bounce back this week?


Happy time

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  • ForExchange

    Hi HappyPip,

    I think if you go short on all of them, nothing bad can happen at the moment 🙂 I am short on NZD/JPY from the beginning of the week and it is falling like a rock!

    Best of Luck

    • Happy Pip

      Ha! Keeping it real simple, I like it! But yeah I do agree that this risk off environment means a short bias for the comdolls. I’m looking to short AUD/USD on the trend line break earlier, hopefully I can catch a nice pullback though. Best of luck with your NZD/JPY short!

  • ForExchange

    I have a question for you, my trailing stop ended my trade (NZD/JPY) with 49 pips win, I was up at least a 100 pips when it turned yesterday around and is keep going up. I do not understand why did it turn around although I look for the reason. There was no catalyst and on NZD was going up on the whole board. Do you have an idea?

    Have a nice day

    • Happy Pip

      That usually happens when general market sentiment turns (Was there an event that sparked a rise in risk appetite?) and boosts higher-yielding currencies and assets. Another factor might’ve been profit-taking ahead of the weekend, as traders closed their NZD shorts.

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