Ugh, it looks like I called it too early when I said that this forex strategy is off to a good start this year. More than the usual share of stops were hit lately!
EUR/USD previously hit its profit target in the first week of January before a new downward crossover materialized. However, it didn’t take long before euro bulls came back charging, pushing price all the way up to reach the full stop loss before another crossover happened.
Cable had a long position left open from the previous week and this barely showed any upside momentum before catching a few pips on a new crossover.
A short signal soon followed but the position was quickly stopped out on last week’s sharp pound rally. Argh!
EUR/JPY hit the trailing stop on its long position that had been open for weeks. A short signal soon followed but this was stopped out just the same.
So much for making up for its Q4 2017 losses!
Anyway, here are the latest positions:
|Pair||Position||Entry||SL||PT||Status||P/L (pips)||P/L (%)|
With that, the SMA Crossover Pullback strategy erased the previous week’s 2.00% gain with a 375-pip loss or a 2.50% dent on the account as the three pairs hit their stops on the short positions.It looks like the tide has been turning for the European currencies these days, particularly for the euro as the ECB shifts to a more hawkish stance. The pound is trailing not too far behind while the dollar looks poised for a repeat of its 2017 price action.