Trade Closed: 2007-03-14 18:35
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.
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.
Trade Idea: 2007-03-14 00:48
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.
If one trade is triggered, be sure to cancel the other open order