Trade Update: NZD/USD Rising Wedge Breakdown

Now that the pair is resting at a major long-term support zone, I’ve decided to book profits off this NZD/USD short position but I’m still open to reentering on a pullback or break lower.

Short NZD/USD Trade

As Big Pippin illustrated in today’s Daily Chart Art, NZD/USD is already at the bottom of its long-term ascending channel which has been holding on since the start of the year. I’ve already adjusted my stop just slightly below entry to lock in a few pips earlier this week but I couldn’t bear the thought of potentially losing my current profits on a strong bounce so I just decided to take ’em and run!

NZD/USD Daily Forex Chart

NZD/USD Daily Forex Chart

With that, I was able to make 200 pips in gains (0.42%) for this short position, which I plan on reopening on a pullback or on a convincing break below the channel support. After all, we’ve got the U.S. non-farm payrolls report coming up and a strong read could reinforce Fed rate hike expectations and dollar rallies.

Before all that, though, traders might be keen on booking some of their profits ahead of the top-tier release so NZD/USD could be in for a quick bounce. I’m eyeing another short position on a pullback to the bottom of the short-term descending triangle around .7250, which lines up with the mid-channel area of interest, or below the .7100 mark depending on how price reacts to the NFP.

Got any comdoll trade ideas you’d like to share? Post ’em right here! And don’t forget to check out our risk disclosure when taking any of these setups.

Cheers,

Happy

See also: Q2 2016 Trading Performance Review

These are some of our favorite trading books if you want to get in deeper with macro economics & trading psychology. BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!