With the weekend just a few ticks away, I thought I’d share some thoughts and adjustments on my open positions in NZD/USD and AUD/NZD.
Original Trade Idea: Simple Fibonacci Forex Setup on NZD/USD
Not much action in NZD/USD since entering at half a position at .7485, although it did make a slow grind higher to currently trade above the .7500 major psychological handle. Without much movement, the technical short setup is still valid, but with Greece getting a loan extension today, I thought it would be prudent to take off my additional half position short at .7500 for any kind of weekend effects or developments from this news. If there are no big surprises by Monday, I will look to put my second half orders back up at .7500.
This is an event we don’t often see, and it’s one that could bring traders out of safe havens like the U.S. dollar and put capital to work in higher-yielding assets like the New Zealand dollar.
Original Trade Idea: Shorting the Forex Trend Lower in AUD/NZD
After busting through that major psychological area around 1.0500 early last week, we’re finally seeing a pullback higher in AUD/NZD. But like my NZD/USD trade above, I’m going to be cautious going into the weekend with this trade as I’m not sure if we’ll see a continued, uncertain reaction to the news on the Greek loan extension. I’m also closing my open half position short order at 1.0500 and will look to re-open again on Monday if there are no big surprises in news or price action.
That’s all for now and hopefully we’ll finally see some volatility next week without Greek exit uncertainty looming over the markets. Thanks for checking out my blog and have a great weekend!