Trade Update: NZD/USD Rising Wedge Breakdown

I’ve booked profits on this NZD/USD short before last Friday’s NFP release then decided to re-enter when the selloff resumed. Here’s how my position is looking so far.

Short NZD/USD Trade

In my earlier update, I mentioned that I’m keeping a bearish bias on this pair and that I’d be looking to short again on a pullback or a break lower. While the lower than expected NFP reading led to a quick boost for the pair, dollar strength returned just as quickly before price even made it to the pullback area I was watching.

Fortunately, I still have another entry on a break below the pre-NFP lows. I was able to get in at .7120 and I’ve got my stop just slightly above the .7200 handle to protect my wins from my previous position.

NZD/USD 1-hour Forex Chart

NZD/USD 1-hour Forex Chart

There’s not much in the way of top-tier reports from New Zealand this week so this pair’s price action could hinge on dollar behavior. We’ve got the FOMC minutes and the retail sales figures lined up from the U.S. this week, and I’m counting on these reports to keep supporting the idea of a Fed rate hike in December. Besides, dollar bulls could get back in the game after noticing that the September jobs report isn’t as bad as the headline figures suggest.

Here’s how my NZD/USD trade is looking so far:

1st position: +100 pips / +0.42%
2nd position: Short at .7120, stop loss at .7220, profit target at .7020, 0.35% risk for a 1:1 R:R

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

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