EUR/NZD: Closed Forex Positions

Just a quick update on my EUR/NZD forex trade… I’ve decided to close my short position ahead of the RBNZ interest rate statement and here’s how it all turned out:

EUR/NZD 4-hour Forex Chart

EUR/NZD 4-hour Forex Chart

Among the euro pairs that sold off immediately after the ECB rate statement, EUR/NZD didn’t have much of a sustained reaction. The pair even pulled right back up to my entry zone after the RBNZ made its monetary policy statement!

Thank goodness I was able to take my profits and run while price was still stuck at the 1.5600 handle, as I anticipated a less hawkish RBNZ announcement. I ended up with 150 pips or a 0.36% gain on my account, part of which is from the positive carry. I know it ain’t much but a win is still a win, right?

For now, I’m still bearish on the euro, but I think I might be better off looking for a stronger commodity currency to short it against. Got any tips?

Cheers!

Happy time

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  • Peter Griffin

    After the expected dovish remarks for the NZD and a likely rate hike for the USD next week, I’m really gearing up for adding further short trades of NZD/USD. The pair has fallen below 0.82 support and without a reversal candle forming, there’s still room for more. However, experts estimated the pair to stay at 0.82. Price is carving a falling wedge chart and might be readying up for a rebound? (see image, source: dailyfx, 09.09.14) I think positive US data will provide some quick pips though either way.

    • Yeah it looks like sentiment is favoring USD long trades at the moment and I’ll definitely keep close tabs on the FOMC to see what they have in mind. Yellen’s likely to try to sound cautious but there’s no denying that US data has been improving and that it might be about time for the Fed to acknowledge this in their policy statement. Thanks for checking out my blog and for sharing your thoughts!

  • Phew! Yeah, I had a feeling this pair really won’t be able to head much further south anytime soon. I’m also switching to a short NZD bias but I can’t quite pick which currency to sell it against. Maybe USD? As always, I love getting your feedback on my trades and ideas so please keep ’em coming!

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