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Bah, stopped out on a pullback! I adjusted my stop to lock in some gains on this short trade, but do you think I was too careful with it?

Short EUR/AUD Trade

In my original trade idea, I tried to catch the bearish momentum off the bounce from the long-term range top. I had a pretty wide stop in case price makes another test of the resistance, but I also aimed for a similarly huge target.

However, the political troubles in Italy (which I thought would last much longer) started to fade as a coalition was finally formed and leaders have been expressing their commitment to the union. I also decided it was time to trail my stop lower leading up to the top-tier events in Australia then.

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

Lo and behold, the pair did made a strong bounce and hit my adjusted stop loss in the process!

In hindsight, I probably should’ve just trailed it down to the area of interest at the broken uptrend line or better yet, closed my short position completely then just waited for a reentry opportunity.

Still, I’m not too bummed out about this since I managed to catch 15 measly pips with the adjustment. Just a tad disappointed knowing that I left so much profits on the table!

The ECB will make its monetary policy announcement later this week, so I’m not too keen about hopping in another short position at market just yet. Besides, the central bank might support hawkish speculations about ending QE soon and starting to hike rates afterwards, so this pair might be in for a few more gains.

Here’s what I got for now:

P/L: +15 pips / +0.01%

I know, I know… It really isn’t much, but I’m still gonna be positive about this since it didn’t end up as a loss. Besides, my other trade on NZD/USD is doing fine anyway. Think that one’s due for adjustments?

Happy

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