Kiwi bulls dropped it like its hot this afternoon, and I couldn’t resist taking a very quick profit on my NZD/USD short forex setup. Here’s a quick trade review!
Original Trade Idea: Forex Trade Idea: Short-term NZD/USD Downtrend
Since my initial entry, NZD/USD popped high enough to triggered my second short order at .6500…just in time to get me in my full position ahead of today’s top tier New Zealand data: Global Dairy Trade Price Index and the quarterly CPI data. Both came in negative (which shouldn’t be a surprise given the ongoing fall in commodities), and it was likely the big down number from CPI data that was the big catalyst for the quick 100 pips drop in the pair for a nice quick gain on my full position.
Again, this was meant to be a short-term trade, and with major U.S. inflation data coming soon (CPI m/m forecasted to come inline with previous 0.0% read), I decided to take this gift and put it in the bank in case the data is negative for the U.S. dollar. So, I closed my entire position manually after the NZ data at .6400.
1st quarter: +50 pips
2nd quarter: +100 pips
Total: +78 pips avg./ +0.27% gain
With this trade closed, I’m back to focusing on my AUD/USD short and NZD/CAD long plays, both are more longer-term setups for now. I am looking for some Japanese yen setups with the risk aversion still in play as well, so keep on the look out for new trade ideas by following me on Twitter and Facebook!
And if you have new forex trade ideas you want to share, please leave’em in the comments area below and maybe we can learn from each other. Good luck and thanks for checking out my currency trading blog!