EUR/CAD didn’t make it all the way up to my short orders before sellers took back the reins, so I decided to tweak my trade plan a bit to make sure I was in before the upcoming ECB monetary policy meeting.
EUR/CAD Resistance Retest and Hold?
Last week, I had an idea to short EUR/CAD to play a potential bearish move around the upcoming ECB and BOC monetary policy meetings. Unfortunately for me, the bears took back control of the pair just a few pips shy of my short orders at 1.4680 before reversing lower this week.
My fundamental bias hasn’t changed since last week, and with price action already indicating I’ve got the right bias, I decided to adjust my entry and exit strategy to make sure I’m in before the upcoming major catalysts. Here’s what I’m doing:
Short half position of EUR/CAD at market (1.4577) max stop at 1.4760 with 0.50% risk, max target at 1.4220
Short half position of EUR/CAD at 1.4675 max stop at 1.4760 with 0.50% risk, max target at 1.4220
I’ll be risking 1.00% of my account if both positions are triggered for a potential 3.6:1 return-on-risk. Depending on what we get from the ECB this week and the BOC next week, I may adjust quickly to limit risk and/or maximize gain if it makes sense.
That’s it for now. Stay tuned for updates and as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.
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