And I’m out! As soon as I saw this pair moving below that short-term rising trend line I’ve got my eye on, I decided to take my profits and run.
If you’re wondering what I’m talking about, don’t forget to review my initial trade idea first!
EUR/CAD Trade Idea
It looks like the euro is taking these Brexit jitters hard as the shared currency got slammed across the board after the U.K. government officially invoked Article 50 to start the negotiation process.
By the looks of it, EUR/CAD is running out of bullish momentum as it fell below the pullback area I was watching.
Loonie strength could also be partly to blame for this trend line break as crude oil inventory reports this week have printed a smaller than expected buildup.
This eases oversupply concerns, along with reports that Libya’s oil output could slide by 250K barrels per day on armed protests disrupting production and shipments in the area.
With the fundamental story starting to shift, I thought it best to just take whatever gains I had and exit this position early. I was able to jump out at 1.4400, which is 50 pips higher than my adjusted stop loss at 1.4350.
But since I was able to put only 0.25% on the line for this position and my pullback entry for another 0.25% wasn’t triggered, I only bagged tiny gains for this one:
P/L: +75 pips / +0.05%
I know it’s not much, but I’m still happy with how I managed this position and was able to catch a few more pips instead of letting price fall to my rolled up stop.Looking back, I probably should’ve set a tighter stop loss, knowing that I’d be managing this trade from a short-term standpoint and with event risks lined up. Lessons learned!
As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups.
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.