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So far so good on my EUR/AUD short play! It’s time for me to make some trade adjustments to protect my position.

Short EUR/AUD Trade

Persistent political troubles in Europe continue to drag the shared currency lower while the Aussie seems to be drawing some support from gold while risk aversion stays on.

I decided to go for a breakout entry below the rising wedge bottom and got it in at 1.5540. I set my stop past the range resistance at 1.6225 and I’m aiming close to the bottom at 1.4525.

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

I might need to adjust my stop lower in a bit, but I’m also worried that putting it down to breakeven might be too close for comfort. A pullback could still happen, given how the pair appears to have tumbled non-stop in the past few days.

I’ll probably wait for this pair to break below the 1.5400 handle before adjusting my stop slightly below entry in order to have a risk-free trade and some change.

Of course I’ll also be keeping tabs on political headlines from Italy and Spain to gauge if the mess could get worse as the week goes on. I’m also considering closing half of my position once price tests the middle of the range around 1.4800, but that’s still a long way off.

Anyway, what do you guys think?

Happy

See also: Q4 2017 Trading Performance Review

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