Looks like sellers are back in control of EUR/NZD since testing a strong area of interest. After a nice drop in the forex pair and ahead of the ECB, I decided to lock in profits.
Original Trade Idea: Trade Idea: EUR/NZD Short
Looks like it was a good idea to be a little patient with my entry as EUR/NZD did pop higher since my original trade idea to get me in short half position right around the top of the recent consolidation range.
Since then, the trade was a bore for a few session, but today proved to be very profitable thanks to fresh euro selling, possibly on the back of recent European economic data being more negative than positive, but more likely on rising fears of a Brexit occurring.
Whatever the case may be, my short position is currently up over +200 pips and with the European Central Bank monetary policy meeting coming up, I’ve decided to:
Roll my stop down to 1.6520 to lock in +100 pips/+0.14% on 0.50% risk
The ECB meeting is almost always super volatile, so it doesn’t make sense to potentially give back all of my profits, and with this adjustment I still leave myself open to achieving my max gain. A “risk-free” trade in my book, which is a good thing for my nightly sleep!
The recent down moves seems to have stalled at the moment, so if there is a bounce higher from here, I will be watching the broken support area around 1.6465 for a potential adjustment to maximize my potential gain further if that broken support holds as resistance and the market returns to the downside. Of course, it all depends on what we get from the ECB meeting, so it’s wait-n-see until then before I make any further moves. Stay tuned!