With the weekend and OPEC meeting quickly approaching , I decided to close down my NZD/USD long position to take profit and avoid event risk.
Original Trade Idea: Forex Trade Idea: NZD/USD Grind Higher
As I mentioned in my USD/CHF long trade review yesterday, I would probably close my NZD/USD trade ahead of this weekend’s event risk in the form of the OPEC meeting. This meeting is likely to stir up some volatility come Monday morning, and I think with the probability high that we don’t see a production freeze deal because of Iran and Saudi Arabia, the recent oil rally could be in for a reversal, taking down with it risk-on and commodity-linked assets like the commodity currencies.
So, there’s a better-than-even chance that we could see NZD/USD turn back to the downside next week, which is why I decided to close down my long position manually (.6902) to lock in profit and avoid weekend event risk:
Total: +98 pips/+0.17% gain on 0.50% risk
Overall, I’m still bullish on this pair in the short-term, so I will be looking for another forex opportunity to go long if it makes to do so after the OPEC meeting. I’ll post a new trade idea when the time is right, but until then, thanks for checking out my blog and have a great weekend!