Trade Updates: GBP/NZD and AUD/JPY

I’m locking in more profits on these positions as momentum keeps going in my favor. Here’s how my GBP/NZD and AUD/JPY traders are looking so far.

Short GBP/NZD

In case you missed my initial trade blog post, lemme tell you that my first position was opened at 1.7605 towards the end of September then I entered another position on a break lower at 1.7330 after that sterling flash crash. With my average entry price (1.7467), I’m looking at more than 400 pips in gains at current price levels and I’ve decided to roll my stop down to lock in at least 242.5 pips (0.31%).

GBP/NZD 1-hour Forex Chart

GBP/NZD 1-hour Forex Chart

The reason I placed my adjusted SL there is that it’s situated just above the short-term descending trend line visible on the 1-hour time frame. It’s also past the 61.8% Fibonacci retracement level, which lines up with a broken support zone.

We’ve got a bunch of top-tier reports coming in from the U.K. this week and today has the CPI on tap. Stronger consumer inflation is eyed since the pound has been tumbling in the past few months, thereby supporting domestic price levels. If so, GBP/NZD could be in for a bounce during the release and might offer me a chance to press my advantage with a pullback or a break below the swing low around 1.6950.

Long AUD/JPY

This one’s finally shown more bullish momentum after the release of the RBA monetary policy meeting minutes this week. I held my breath in a few instances last week, particularly when China printed a weaker expected trade surplus, but fortunately this was outweighed by stronger than expected Chinese inflation figures later in the week.

AUD/JPY 4-hour Forex Chart

AUD/JPY 4-hour Forex Chart

I was able to go long at 78.85 and on a quick pullback to 78.00 for an average entry price of 78.42. I’ve rolled my stop just slightly above entry (78.85) for a risk-free trade with some change, and I’ll make the next round of adjustments once price tests the next ceiling near 81.00.

The RBA minutes indicated that policymakers are concerned about the Aussie’s appreciation, which isn’t out of the ordinary for new Governor Philip Lowe. However, this didn’t stop the bulls from charging as the minutes also reflected a positive outlook for commodity prices, inflation, and growth.

We’ve got another round of Chinese top-tier reports later in the week so I’ll be watching this one pretty closely, not just to consider closing early if necessary, but also to press my advantage if fundamentals support it. On Thursday, Australia is set to print its September jobs report so I’ll be looking out for those numbers also.

As always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.

Risk Disclosure
Pipcrawler’s Q2 2016 Blog Trading Performance