I’ve already got a bunch of forex positions open so I’m not really thinking of adding any new setups to the mix right now. Instead, I’m coming up with a few trade adjustments to my USD/CAD position.
As you can see from the 4-hour forex chart below, I was able to enter a long trade at the 1.2625 mark after price broke above the descending triangle resistance. The pair is currently stalling at another resistance area, which might keep further gains in check.
With the much-anticipated Fed decision coming up, I’ve decided to move my stop to entry in order to have a risk-free setup ahead of the event. In case more dollar bulls come out to play during a hawkish FOMC statement, USD/CAD might make a break past the previous highs so I’m setting a buy stop order around the 1.2900 mark.
While recent reports from the U.S. suggest that the Fed is likely to be much more upbeat this time, I’m inclined to think that these expectations have already been priced in. Any cautious comments might force the Greenback to retreat so I decided to limit my exposure to this event risk.
What do you think of the adjustments I’ve made? As always, I’d love to get your feedback on my ideas!
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