Volatility is here, pushing the forex markets all over the place. With fear so high and the weekend coming up, it’s time to update & make adjustments on my AUD/USD & NZD/CAD trades.
Original Trade Idea: Forex Trade Idea: NZD/CAD Long on Pullback
I actually don’t have an adjust for my NZD/CAD as the pair really hasn’t gone much of anywhere in the last week or so. I did want to make an observation that the area around the rising 200 moving average and minor psychological support level of .9250 seems to be drawing in buyers. And with the stochastic indicator now rising out of oversold conditions, I like my odds a little better that the trend will continue.
So, I will hold for now and leave open my addition long quarter position order at .9000 in case the market gets down there. Hopefully not, but I still wouldn’t mind adding to the position there since the trend will still be valid at that point. Why not improve your position price, right?
Original Trade Idea: Forex Trade Idea: Rising Wedge on AUD/USD?
I’ve got a much different story going on in my AUD/USD short, which has fallen a fast 300 pips since I entered at .7167 despite some mildly positive Australia jobs data this week. This is likely due to the broad risk aversion flows we’re seeing thanks to the falling oil markets and a spill over of fear from the falling Chinese equity market, and they are stories that may continue into next week.
With a big gain and the weekend quickly approaching, I’ve decided to roll down my stop from .7560 to .6965, locking in +202 pips and creating a risk free trade. It’s a very small position, so I’ll definitely look to add to my position next week if the market can stay below the .6900 handle. Stay tuned and have a great weekend!