Looks like EUR/NZD couldn’t sustain the sell off and bounced higher into the weekend, triggering my adjusted stop along the way to close me out for a small profit.
Original Trade Idea: Forex Trade Idea: EUR/NZD Short
After adjusting my stops to 1.6250 yesterday, it looks like EUR/NZD couldn’t sustain its down move. This was likely due to the broad risk aversion sentiment that hit the Friday London session; possibly on the commodity selloff and a nervous market ahead of next week’s highly anticipated Fed meeting. Whatever the case may be, EUR/NZD popped back up above 1.6200 and beyond, triggering my adjusted stop at 1.6250 to close out my short positions:
1st quarter position: +50 pips
2nd quarter position: +250 pips
Total: +0.29% gain/ 0.58:1 R:R
Overall, it was a good trade setup, and extremely lucky for me that Kiwi bulls took over after the RBNZ cut interest rates again. I am looking to short this pair again sometime soon, but I think with risk aversion still in the forefront, I’ll have to wait patiently for the fear to subside.
That’s it for now. Thanks for checking out my blog and have a great weekend!