EUR/NZD sellers managed to fend off the buyers to send the pair another leg lower this week. With the weekend approaching, I decided to lock in further profit!
Original Trade Idea: Trade Idea: EUR/NZD Short
As I mentioned above, sellers were able to stay in control despite a bounce higher ahead of this week’s European Central Bank monetary policy meeting. Fortunately for my trade, the potential for inflation missing the ECB’s targets and for more stimulus sent forex traders into sell mode on the euro, sending euro pairs on a quick move in favor of the counter currencies. Unfortunately, this means I missed an opportunity to add on the pullback as I avoided adding addition risk before the event, but on the positive side, the volatility wasn’t strong enough to take the market up to my adjusted stop of 1.6520–my trade is still alive and kicking up some profit!
Now with the weekend quickly approaching and the market trading further into profit, I wanted to lock in additional gains to avoid any unforeseen weekend risk so I rolled stop my lower to 1.6420 to lock in a total +200 pips or +0.28% gain on 0.50% risk
Next week, I’ll probably look to close this one out Monday or Tuesday to avoid the Reserve Bank of New Zealand monetary policy statement. Expectations are for a potential cut in interest rates to 2.00% from 2.25%, which could send the Kiwi lower across the board. Until then, I’d like to see if the Fibs will draw in more sellers to hopefully push the pair down lower and get me out at a better price or potentially add to maximize my gain. That’s all for now fellow currency traders…thanks for checking out my forex blog and have a great weekend!
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