The sweet technical setup spotted on EUR/USD last week played out well for the bears, but with a new month and top tier events ahead, I decided to a quick profit for now. Here’s a quick review.
Resistance Confirmed on EUR/USD?
Last Thursday, I decided to get in EUR/USD short to play my fundamental bias in favor of the Greenback over the euro, after a set of bearish technical patterns appeared. And it looks like the signal worked out well for the bears, likely due to a combination of positive business and consumer sentiment data, as well as U.S.-China trade rhetoric hit the markets at the end of last week.
The momentum has seemed to have died this week, likely due to a retest of a major support area / psychological level (1.1000), but also likely due to the holiday shortened week in the U.S. And with the final month right around the corner to introduce a fresh round of top tier economic data this week, I decided to not risk losing my small gains by closed down my nibbler position at market (1.1001), as well as my open order to short another half position at 1.1095:
Total: +57 pips / +0.17% gain on 0.50% max risk
So, not a bad return for a trade held for less than a week, but unfortunately since it was a nibbler position, the gain wasn’t anything to write home about. And it seems like volatility is creeping lower and lower as each week passes by with no major shocks to the financial markets, which means I may have to adjust my risk / position sizing to take better advantage of this environment.
Stay tuned for new ideas with those adjustments, and until then thanks for checking out my blog! Good luck and good trading!
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