I seem to have gotten stopped out on a quick pullback for this one, but all is well since my adjustments allowed me to lock in decent gains on this short trade. Make sure you review my initial trade idea before reading on.
In my latest trade update, I decided to roll my stop lower once more in order to lock in a few more pips. You see, I previously trailed my stop just slightly below entry for a risk-free trade then moved it down again after price broke below the previous lows at the 1.4700 major psychological mark. At that time, I didn’t want to leave more pips on the table in case New Zealand’s quarterly jobs report missed the mark.
As it turned out, bears needed a bit more energy before going for a dive all the way down to the channel support near the 1.4500 level where I placed my profit target. New Zealand printed a much weaker than expected headline jobless rate that triggered a selloff for the Kiwi, causing the pair to make a small retracement to the mid-channel area of interest around 1.4850 yesterday and hit my adjusted SL in the process.
I’m still happy with how this trade turned out, though, as I managed to bag 140 pips or a 0.18% gain on my account with these adjustments. But now that I’m seeing the 1.4800 area hold as resistance, I can’t help but wish that I just added to my position on this pullback or tried to be a tad more patient in holding on to this trade.
Then again, it’s tough to tell if price could make it all the way down to my 1.4525 PT eventually. Besides I can always grab the opportunity to short again if fundamentals still line up for a downside bias on this one. I’ve also got another euro short position with my EUR/AUD trade anyway so I’ll turn my focus on that trade for now.
Looks like the 1.4300 mark at the middle of the range kept gains in check and price is now attempting to break below the 1.4135 support area once more. Australia’s reports just came in stronger than expected while China reported slightly upbeat PMI readings yesterday so I’m thinking the Aussie can put up a good fight.
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.
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