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With the weekend a few moments away, it’s time to reduce risk and even lock in a very small profit on a couple of winners in my forex portfolio: GBP/CHF & AUD/CAD.


Original Trade Idea: Forex Trade Idea: AUD/CAD Short

AUD/CAD 4-Hour Forex Chart
AUD/CAD 4-Hour Forex Chart

Since entering the short position last week, AUD/CAD has been on a slow grind lower, and it’s finally made its way down to a previous minor support area that seems to be holding at the moment (around .9825).  This lack of strong directional moves and low volatility is likely a combo of bearish risk sentiment putting pressure on the Aussie and Loonie (both “risk-on” currencies), but at least it is moving my way right now.

The question now is whether it will break that minor support area or not, but with the weekend coming up quick, we probably won’t find out the answer to that question until next week.  So for now, I’m going to reduce risk by rolling my stop down to breakeven at .9941. 

Next week, if the pair doesn’t break, it’s likely forex traders will see it as a short-term long opportunity, especially if oil continues to get smacked lower.  If that’s the case, I’ll close early to keep some profit, but if it does break, I’ll re-assess and possibly add to this small position and maybe even go for a lower profit target.


Original Trade Idea: Forex Trade Idea: GBP/CHF Downtrend Pullback

GBP/CHF 4-Hour Forex Chart
GBP/CHF 4-Hour Forex Chart

It looks like the Fibs drew in sellers, and with the help of bearish sentiment after this week’s Super BOE Thursday, GBP/CHF has fallen over 300 pips in my direction for a nice small gain.

Like AUD/CAD above, I want to reduce my risk on this trade, and even better, lock in a small profit by rolling my stop down to 1.4525.  I will also close my open orders to short another quarter position at 1.4950. 

Looking ahead to next week, we may see another push lower with the U.K. manufacturing production numbers on Wednesday (negative surprises recently), and possibly even a continuation of today’s “risk-off” sentiment.  With a lot of the Asia markets on holiday early next week, the thin liquidity could make continued pressure on risk more pronounced than it normal, which is why I want to stay in this trade rather than taking profit now. And if there is a strong move lower, I will look to maximize my gains by potentially adding another small position and rolling my stops lower.

And no updates on my NZD/CAD as it is a longer-term position and it really hasn’t gone much of anywhere since I last updated early this week.

That’s it for now.  Thanks for checking out my forex blog, have a great weekend, and stay tuned by following me on Twitter and Facebook!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.