Everyone having a good trading week so far? Well, I hope you’re having a better run than I am, as my setups aren’t looking too great for now.
As I’ve mentioned in my previous trade update, I planned on shorting this pair if the euro zone GDP figures came in weaker than expected. As it turned out, Germany showed an economic contraction for the quarter while the region had a flat GDP reading… so I jumped in at market and shorted at 1.5750!
Unfortunately though, the Kiwi failed to draw much support from buyers as New Zealand also printed bleak data later on. With that, EUR/NZD is still bouncing around my entry zone and unable to head further south. It looks like the area of interest is still holding as resistance though and stochastic is once again indicating a pickup in selling pressure. Do you think I should keep this one open?
As for this AUD/NZD setup, I’m a bit worried that price appears to be making a break above the channel resistance on the 4-hour forex chart. The pair is still testing the 1.1100 major psychological level though and it might keep any rallies in check, as stochastic has reached the overbought area.
I’m still thinking that higher interest rates could draw traders back to the Kiwi sooner or later, but the less dovish than expected RBA minutes could continue to keep the Australian dollar supported. Do you think I should cut losses on this one or hold on to my longer-term bias?
As always, I’d appreciate your feedback on my trades!
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