Why, Draghi, why?? Just when I thought EUR/AUD would make it all the way down to my profit target, the ECB press conference took place and sparked a sudden forex reversal. I’m about to vent my frustrations in a bit, but make sure you check out my initial idea and latest update first.
I was already feeling pretty giddy upon hearing about the fresh batch of stimulus efforts from the ECB and seeing the euro drop like a rock after the announcement, so I took a quick break to do my happy dance when EUR/AUD was already just a stone’s throw away from my PT at 1.4425.
Still, I trailed my stop a bit lower to 1.4925 above the short-term falling trend line just to lock in more profits. At that time I was thinking that Doomsday Draghi’s remarks during the press conference would push the shared currency much lower so I wasn’t too concerned.
But we all know what happened next…
Price reached a low of 1.4467 before suddenly whipsawing higher, taking out my adjusted stop to 1.4925 in the process. As it turns out, Draghi mentioned a little something about having no plans to lower rates much further in the near future. Argh!
While I’m patting myself on the back for trailing my stop lower, I guess I’m just bummed out by the fact that I came really close to knocking out a big win with this short forex position only to have the profits slip away.
Note to self: Don’t do a happy dance until a trade is closed in the green. And don’t underestimate Draghi’s penchant for surprises.
Then again, a win is a win. I managed to lock in 110-pip gain for a teensy 0.10% profit on my forex account. It could’ve been a 0.75% win without that reversal, but it would’ve actually turned out to be a breakeven trade had I not trailed my stop… so, yay me!
How about you guys? Did you have any euro trades during the ECB statement?
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