With all the crazy moves in the forex market these days, it’s no wonder I’m taking more setups than usual. Here’s what’s going on in my three open trades right now.
Yep, my position trade on AUD/CAD is still open! I’m a bit bummed out that it hasn’t been showing much movement lately and that price seems to be stuck above the .9600 major psychological mark. I’m thinking that expectations of another RBA rate cut in the coming months could continue to drag this pair down, especially since the BOC confirmed that they’re no longer looking to ease for the meantime.
The upcoming event risk for this setup is the Canadian jobs report later on this week, as a weak figure might lead to a strong bounce for this forex pair. My stop is at my initial entry point anyway so I’ve got only 0.5% of my account on the line on this one.
So far so good on my USD/CAD trade! After breaking above the descending triangle resistance, the pair didn’t even look back on its climb. Fortunately, I was able to get a piece of the action by going long at market when price was trading around 1.2625. The pair is testing its previous highs near the 1.2800 mark right now and I’m considering adding to my position in case it breaks higher.
I’ll be keeping close tabs on the U.S. retail sales release and the Canadian jobs report, which might serve as catalysts for either a reversal or a strong breakout. I’ve also moved my stop to entry for this trade so I’ve got a risk-free position right here.
Last but definitely not least is my latest setup on EUR/NZD. I was able to short at the 1.4700 major psychological resistance level before the pair made another leg lower this week. I adjusted my stop to entry just before the RBNZ decision earlier in order to limit my exposure ahead of the top-tier event, knowing that I couldn’t watch my open trade during the actual statement.
Fortunately, the RBNZ announcement turned out in favor of my trade, as the central bank refrained from cutting rates and even announced upbeat growth forecasts. Forex market watchers seemed to pay no attention to Wheeler’s jawboning and the Kiwi managed to advance against the euro, which has been dragged lower by the ECB’s ongoing QE program.
I’ve also adjusted my stop to entry on this one for a risk-free trade but I’m planning to add to my position now that price broke below the previous lows at 1.4500.
So far, even with these three positions going, I’ve only got a total of 0.5% risk. I could still add to my open trades to press my advantage if momentum picks up. Do you think that’s a good idea?
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