Decided to take my profits and run after New Zealand’s reports all came in the green! Here’s how my long EUR/NZD position turned out.
So much for trying to stay in this swing trade… You see, I was banking on more Kiwi weakness ahead of the potential RBNZ interest rate cut, but the latest batch of reports tells me that the central bank might either hold off on easing or reiterate that they won’t be cutting rates again anytime soon. Not only did New Zealand’s quarterly jobs figures post a huge upside surprise, but its latest GDT auction yielded a massive 11.4% gain in dairy prices as well.
I was able to go long at market on a pullback to the broken resistance at the 1.5300 major psychological level, which is close to a rising trend line on the 1-hour time frame. The pair made a strong surge thanks to risk-off vibes at the start of November, but Kiwi strength eventually won out and forced EUR/NZD to return its gains.
I was already able to adjust my stop slightly above entry when price zoomed up to the 1.5450 area, which is right around the middle of the long-term range I was looking at, but I figured I’d be better off locking in my gains before price attempts to break below the short-term trend line. Here’s what I ended up with:
P/L: +50 pips / +0.11%
I know it’s not much (again!) but a win is a win, and I’d rather take these small gains rather than leave it all on the table when I can feel fundamentals shifting. I do hope I get a larger chunk of profits in my next trades! Got any ideas you’d like to share?
As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups.