Wacky times in the forex market lately, right? Well, we had another swift move in risk sentiment, pushing my EUR/NZD short up to its adjusted stop. Here’s a quick review.
Original Trade Idea: Forex Trade Idea: EUR/NZD Short
So, we’re back into “risk-off” mode once again due to moves in the oil markets, all sparked by comments from Saudi Oil Minister Ali Al-Namini. After Minister Al-Namini basically said not to look for a cutback in oil production, oil traders went back into sell mode and lately, where the oil markets go, so does risk sentiment.
This turned that minor support break in EUR/NZD into a fakeout, pushing the market up to my adjusted stop at 1.6675 to take me out of my short position for a small gain.
Total: +265 pips/ +0.30% gain on +0.50% risk
In hindsight, I probably could have done better with my entry (be more patient and put orders at 1.7000) and I could have taken profits as soon as the market jumped back up the broken minor support level. Or at the very least, as soon as sentiment shifted with the oil minister’s comments since that was a pretty legit catalyst.
Overall, I’m pretty happy with the way I’ve played EUR/NZD lately, but I don’t think I’ll short again since the fundamental picture favors risk-off sentiment. I’m flat overall now, but I am on the lookout for a setup to play my risk-off bias. Stay tuned by following me on Twitter and Facebook!