Forex Adjustments: EUR/NZD & NZD/CAD

Even with volatility slowing down, my trades in NZD/CAD & EUR/NZD continue to grind in my direction. So with more pips in the bag, it’s time to make forex adjustments to lock up more profit.

Long NZD/CAD

Original Trade Idea: Forex Trade: Long NZD/CAD on Pullback

NZD/CAD 4 Hour Forex Chart

Since my last update, it’s been nothing but continued upside support for the Kiwi, including in the NZD/CAD market. New Zealand’s low probability of a rate cut and its positive interest rate differential with the majors continue to make the currency very, very attractive for longer-term players. With the market moving more in my favor, I’d decided to roll up my stop from .9285 to .9430 to lock in a total 230 pips on a half position.

The rest of this week’s calendar doesn’t look like it’ll have potentially big catalysts for either currency, so it’s likely we’ll continue to see folks with long positions here.  And who knows, I may even considering putting another half position back on if there is a pullback to the new resistance-turned-support area around .9500.

Short EUR/NZD

Original Trade Idea: Forex Trade: Short EUR/NZD Downtrend

EUR/NZD 4 Hour Forex Chart

EUR/NZD 4 Hour Forex Chart

The story is pretty much the same for EUR/NZD, riding the positive NZD sentiment I mentioned above, and on the broad weakness the euro saw ahead of and after the European Central Bank’s journey into quantitative easing. I am a little concerned of the positive euro data we’ve seen recently, so I decided to lock up more of my profits in this pair to, moving the stop from 1.4670 to 1.4530.

Again, my sentiment on the Kiwi remains the same, and for the euro, even if the data is getting better, it’s still just getting into quantitative easing programs which is bearish for its own currency.  There’s a likely chance that there are still plenty of euro sellers out there, especially against high-yielders like the kiwi, so I’ll keep hanging on with still a wide stop after the adjustment and see where the market takes me.  Stay tuned!