Decided to close out my short EUR/CAD position for a profit after a nice move lower in a short amount of time. Here’s a quick trade review!
EUR/CAD Resistance Retest and Hold?
After adjusting my entry strategy to get in EUR/CAD short ahead of the European Central Bank’s latest monetary policy meeting this week, EUR/CAD did manage to gain some downside traction, but it wasn’t a monster move that I was looking for. Despite some gloomy comments on the economic outlook from Mario Draghi in his last press conference as the President of the ECB, and reports of fighting between ECB members, the euro made a relatively muted move lower against most of the majors.
Without a big momentum move in the works, my conviction dropped that we’ll see the market be able to break the major support area around the 1.4450 area. So, with the potential reward-to-risk looking unfavorable at current levels, and the weekend quickly approaching, I’ve decided to take the trade to the bank by closing manually (1.4475), as well as closing my open short orders at 1.4675:
Total: +102 pips/ +0.27% gain on 0.50% risk taken
Overall, not a bad haul for a three day hold, over a 50% return-on-risk. I’ll take trades like that anytime! And I’m still bearish on EUR/CAD and will look to short again if the pair bounces, or we see a big break of the major support area.
Stay tuned for that and for new ideas coming next week and until then, thanks for checking out my blog…have a great weekend!
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