Partner Center Find a Broker

Don’t you hate it when that little Han Solo voice in your head going “I’ve got a bad feeling about this” turns out to be right? Here’s how my trade wound up.

Long EUR/AUD Trade

I was feeling a bit antsy about not having any trades open for a few weeks already, so I may have jumped the gun in hopping in too early with this long setup.

You see, I had a long EUR bias mostly due to hawkish ECB expectations, but medium-tier data didn’t seem too supportive of this view. I also expected the Aussie to keep sliding on persistent trade war jitters, but tensions actually cooled down in the past few days.

EUR/AUD 4-hour Forex Chart
EUR/AUD 4-hour Forex Chart

These were enough to spur a break below the channel support, just enough to hit my stop loss at 1.5780 before pulling up slightly. In retrospect, I probably should have waited for a much deeper correction to the longer-term channel bottom I already had my eye on.

EUR/AUD Daily Forex Chart
EUR/AUD Daily Forex Chart

But as they say, hindsight is 20/20… that, and there’s no use crying over spilled pips, right?

Besides, I should’ve taken that 4-hour head and shoulders pattern (that some of my dear readers have also pointed out!) as a warning signal that further losses are in the cards. Here’s what I ended up with:

P/L: -200 pips / -0.50%

Not the best way to start this quarter, huh? Got any new trade setups that could help me recover? Please do share!

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.