Closed out my short-term short position in EUR/CAD as support begins to form near my max target. Here’s a quick review.
EUR/CAD Fib Short
After adjusting my entry from my original plan to short EUR/CAD last week to go in short at market (1.4540), sellers took control of the pair at the Fibs/divergence signal and rode the market lower into the weekend. It’s likely the broad positive global risk sentiment was the driver for the Loonie to gain on the euro, mostly driven by the improving U.S.-China trade relations (U.S. and China sign the Phase 1 trade deal) and the stimulative monetary policy environment that the world’s central banks are likely to continue to hold.
The pair managed its way lower to nearly hit my max target (1.4455), but just couldn’t quite get there today as volatility remains low during the U.S. holiday. With the stochastic in oversold territory and a very busy week ahead for both currencies (Bank of Canada monetary policy meeting and ECB monetary policy meeting ahead), I decided the last 16 pips wasn’t worth risking my gains for, so I closed out my trade manually at market (1.4471):
Total: +69 pips / +0.43% on 0.50% max risk
Overall, it was a very nice return for week’s holding time of 0.86 to 1 R:R, so I’m pretty happy with this trade. And with potential volatility picking up for both currencies with top tier events on the way, I’m definitely keeping an eye on EUR/CAD for fresh opportunities for another short-term position, depending on what the events and traders’ reaction gives me.
What do you guys think? Good adjustment to close the position down or should I have kept the trade on into this week’s top tier events. Let me know in the comments section below!
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