Pick of the Day: NZD/USD – Trade Closed

Trade Closed: 2007-03-14 18:35

The second half of our short position was closed out on a stoploss for a minor -15 pips. Combine this with the first half of our position we netted +15 pips for the day!

1st Half: +30 pips
2nd Half: -15 pips
Total: +15 pips

Trade Adjustment: 2007-03-14 12:25

We’re in the money in our short position as we once again see money flowing from higher yielding currencies to more stable currencies. I still see the pair dropping further, but with the Euro session markets closing within a few minutes, it may be prudent to both take some money off the table and trail the markets movement.

With the curent market price at .6875 I will close half of our position, and adjust our stop from .6960 to .6920. This will lock in +15 pips profit if the trade goes all the way back up.

Be sure to close the open order to short at .6820. Good luck!

Trade Update: 2007-03-14 10:55

It has been a volatile morning, especially for our trade as NZD/USD shot up, triggered our short trade and made its way to .6950 before reversing back down to the current market price of around .6912. The US Current Account came out earlier today at -196B versus the forecast of about -204B, which is USD positive. Also, Crude Oil Inventories came in showing an increase of 1.1M which can also be seen as USD positive as this number may push oil prices down.

With fundamentals supporting our trade, we will stay in our position with no adjustments. Stay tuned and good luck!

Trade Idea: 2007-03-14 00:48

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Big story of the day for currencies was more unwinding of higher yielding assets like NZD, AUD and moving it into more stable assets like the JPY and the CHF. How much further will it continue? Well, with US equities taking a hit yesterday and Asian equities taking a 2% hit at the moment, we may see further risk adverse action take place.

The Kiwi was one of the biggest losers yesterday, and we may see it drop even further through the next trading session. We’re looking at two entry points at the moment. If speculators take profits and the pair retraces, then a short at the 50% Fib line would be a great short entry; especially since it coincides with the major price level at .6900.

If the pair continues to drop further from this level, we will short below the previous low at .6820.

Short NZD/USD at .6905, stop at .6960, pt1 at .6835, pt2 at .6810

or

Short NZD/USD at .6820, stop at .6860, pt1 at .6760, pt2 at .6740

If one trade is triggered, be sure to cancel the other open order

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck!

  • nickelnm

    My broker doesn’t provide access to this particular trade. I currently use MGFOREX, but am thinking about changing. Whom do you recommend?

  • pipcrawler

    Hey nickelnm, are you sure you don’t have NZD/USD on your platform? It’s one of the major currency pairs…

  • nickelnm

    My broker doesn’t provide access to this particular trade. I currently use MGFOREX, but am thinking about changing. Whom do you recommend?

  • pipcrawler

    Hey nickelnm, are you sure you don’t have NZD/USD on your platform? It’s one of the major currency pairs…

  • nickelnm

    Hi Pipcrawler,
    Yup I am sure. I am thinking about switching brokers as their platform locks up at least once a day. I really like the layout and the ease of use, but their lowest spread is 3 (only one pair at that spread) and they don’t offer the NZD/USD. I double-checked the platform.

  • nickelnm

    Hi Pipcrawler,
    Yup I am sure. I am thinking about switching brokers as their platform locks up at least once a day. I really like the layout and the ease of use, but their lowest spread is 3 (only one pair at that spread) and they don’t offer the NZD/USD. I double-checked the platform.