Forex Updates: Short GBP/NZD and AUD/USD

I currently have a short-term play on AUD/USD and a longer-term forex setup on GBP/NZD. Before reading my trade updates, make sure you check out my trade ideas first:

AUD/USD Retracement to .8700

AUD/USD 4-hour Forex Chart

AUD/USD 4-hour Forex Chart

After waiting for confirmation on this AUD/USD short setup, I spotted a shallow bearish divergence and decided to enter once price showed downside momentum. I was able to get in around the .8700 area, with a stop at the .8850 mark and a target at .8550.

I do wish I was able to enter at a much better price though as I realized that the broken support area was more of a rising trend line that coincided with the 61.8% Fib! I’ll be keeping this one open for now since we’ve seen bleak reports from China and renewed dollar demand after strong U.S. retail sales figures were released last week.

GBP/NZD Double Top Formation

GBP/NZD 4-hour Forex Chart

GBP/NZD 4-hour Forex Chart

As for this one, I’m a bit bummed out that I missed my pullback entry after price broke below the neckline and 2.0000 major psychological mark. I was able to short at market at the 1.9700 handle with a really wide stop at 2.0200 and a smaller position. Since this is a long-term play based on the daily and 4-hour time frames, I still plan to add on a retracement or another breakdown while aiming for the 1.9000 levels.

Forex Gump gave four convincing reasons why the pound could keep dropping and I share this bias, along with the bullish outlook for the Kiwi. After all, Finance Minister Bill English did say that the New Zealand dollar is already trading at sustainable levels, lowering the odds of RBNZ intervention.

Do you think I could win both trades this time? As always, I look forward to your feedback!

Cheers!

Happy time

Other Popular Articles:

What is the STA strategy? Q3 2014 in Review Comdoll Trading Kit NZD/USD Trade

 

  • ForExchange

    Hi Happy Pip,

    as I am currently bullish on the comdolls I like your second setup more. Of course USD is strong so that one can turn out good too; however when two strong currencies meet it is never an easy ride.

    Good luck to you,
    FE

    • So far so good on my AUDUSD trade and I’m hoping to take profit soon. I’ve got another bullish comdoll setup comin’ up!

  • ForExchange

    Hi Happy Pip,

    it seems like you do not have much luck with your NZD entries. However I think now you have a better chance to sit it through with your SL.

    I hope the retracement won’t be huge.

    Have a nice day,
    FE

    • Yeah I really don’t! Looks like I keep entering at the bottom but at least I’ve made adjustments with a wide stop now.

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