Forex Trade Updates: Short NZD/USD & CAD/JPY

Short NZD/USD

Original Trade Idea: Forex Trade Idea: Swing Short on NZD/USD

NZD/USD 1 Hour Forex Chart

NZD/USD 1 Hour Forex Chart

Ahead of the widely expected rate cut from the Reserve Bank of New Zealand, I trailed my stop to breakeven to reduce the risk of being blown out by a sharp move against me on a top tier event.  The RBNZ cut the official cash rate by 25 basis points to 3.00% as expected, but rallied on the news, showing that the market had fully price in the move beforehand and is now taking profits.  The move higher was swift, taking NZD/USD to my trailed stop at .6650 to close my trade at breakeven.  

Total: +00 pips/breakeven

Technically, the pair is still bear mode in the short-term since it hasn’t broken above the Fibs and falling trendline area. And with some economists talking potentially more rate cuts in 2015, there could be a bearish renewal after this reaction to the RBNZ subsides.  Will continue to look for short opportunities for now, but maybe re-enter next week.

Short CAD/JPY

Original Trade Idea: Technical Forex Short Opportunity on CAD/JPY?

CAD/JPY 1 Hour Forex Charts

CAD/JPY 1 Hour Forex Charts

After the surprise Bank of Canada interest rate cut last week and downside reaction move in the Loonie last week, volatility has pretty much died in CAD/JPY. Dead markets aren’t usually worth tying up capital in, but since I think the recent rate cut and weakness in oil will likely continue to put pressure on the Loonie for now, I’m not going to give this one up just yet. But I’m also not going to risk my gains so I’ve decided to roll down my stop to lock in 100 pips on this trade by trailing my stop down to 95.75.  My target is still 94.75, so it’s up to the market from here on how much profit I’ll walk away from this trade with.  Stay tuned!