Forex Trade Update: EUR/NZD and AUD/NZD Setups

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.

EUR/NZD Correction Forex Trade Idea

EUR/NZD 4-hour Forex Chart

EUR/NZD 4-hour Forex Chart

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?

AUD/NZD Double Top and Channel Resistance Forex Setup

AUD/NZD 4-hour Forex Chart

AUD/NZD 4-hour Forex Chart

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!

Cheers,

Happy time

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  • Emil

    Interesting reading as I have pretty much the same thing to deal with. Though I have also shorted EUR/AUD.

    For my part I will keep the EUR/NZD open until it hits my stopp-loss at 1.59. I managed to get enter around 1.58 so I think that is acceptable.

    Sure is an proving to be an interesting trade with big daily swings.

    Best of luck to you 🙂

    • Man, I wish I picked EURAUD too since that pair did sell off! I’ve also got a wide stop on EURNZD so I’m inclined to hold on to it for now. Thanks for sharing your thoughts and best of luck to you too!

  • ForExchange

    Hi Happy Pip,

    I made some quite happy pips lately with NZD 🙂 However I have to say I do not see any reason besides carry trade to go long with NZD. All my trades were shorting it. It is not anymore the same as great setup to trade as it was earlier!

    IMO your EUR/NZD might work but AUD looks strong so with AUD/NZD I am a lot more sceptical.

    Greetings

    • Thanks for sharing your thoughts! Yep it does look like positive carry is the only factor supporting NZD for now but the fundamental bias appears to have shifted, especially for AUD/NZD.

  • Wahh, it looks like I already got stopped out. Think I should’ve had a wider stop?

  • It looks like I already got stopped out on AUD/NZD. You’re right, EUR/NZD is looking a lot better.

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