Open trading account 
Currency Pair: EUR/AUDSide: Short
Amount: 5Mill
Time Frame: 1h
Open Price: 1.44607
Close Price: 1.441732
PnL: +43 pips Profit
Open date: 01.07.2014 12:48:49
Close Date: 01.07.2014 22:12:19
Reasons Behind the trade: The only reason why I traded this pair was because I wanted to maximize my profits through a more volatile pair. I was bullish the Australian Dollar which at that moment I felt it's going to break up and at the same time this bullishness will be felt across the board on every AUD pairs.
The logical play was to choose EUR/AUD because I thought that EUR also look very weak due to various technical reasons, and I always try to play the strongest pair versus the weakest pair, this way I'm making sure my upside potential(profits) are far greater than the downside potential (losses). Basically that's how you ensure you're going to have a great risk to reward ratio.
In Figure 1 you can see at what technical levels I was watching and why my entry was where it was. What got me in this trade was the fact that the upside momentum was very weak and we couldn't sustain any break upside that Pivot zone. Historically that line had a lot of confluence and I was expecting a reaction, and at least for a retest of the 1.4400 swing low and support zone.
Figure 1. EUR/UAD 1h Chart (click on figure to enlarge).
You don't trade blindly but you permanently manage your position and which is most important thing, try to assess the risk. So as you can see I've moved my SL to protect myself because I was also expecting the Australia’s trade balance to deteriorate sharply in May and this should weaken aussie. The Australia trade balance for May came in at -1911m (vs. expected -200m).
Best Regards,
Daytrader21
