NZD/USD Day Trade: Last Trade of the Month! – Trade Closed

Trade Closed: 2011-04-01 8:00

Well, I finally managed to lock in a few pips this time! As I expected, NZD/USD reached for the previous day high around my first profit target, so I was able to close my position with a 35-pip win.

NZD/USD Trade Closed

And then, just when I thought I could buy the gorgeous dress on display a few blocks away, I thought that the pair would reverse! This made me more nervous than my first middle school play so I decided to close my trade if the big U.S. NFP report comes in better than expected.

Sure enough, the report came in at 216,000, beating the expectations of additional 200,000 payrolls. What’s more, the U.S. unemployment rate also fell from 8.9% to 8.8% in March! I closed the trade as soon as I saw that NZD/USD was fast approaching my entry level.

Looking back, I think I could’ve gained more pips if I only I had made allowances for the volatility of the NFP report. After all, risk sentiment already heavily favored the high-yielding currencies. I should’ve gotten clues that a good jobs report might further fuel risk-taking. Perhaps I could’ve just moved my stop to breakeven. Care to share some thoughts on how I could’ve played this better?

Here’s how it played out:

P/L: +25 pips (average of +35 pips on first position and +15 pips on second position), +0.625%

Oh well, at least I finally broke my losing streak! Not a bad way to end the month, eh? I’m crossing my fingers that my next trades bring me more pips!

Trade Idea: 2011-03-31 10:07

Even our resident economic hotshot believes that you can make serious moolah by playing the comdolls. Hah! But the question is, which one?

After long hours of soul-searching (okay, more like SOLE-searching because I really went shoe shopping), I decided to go with the Kiwi. Unlike Australia and Canada, which are both dealing with some political rifts, New Zealand seems to be doing mighty fine. With not much economic data due in the next couple of days, the Kiwi could simply keep calm and carry on with its current uptrend.

I’ve been waiting for a chance to jump in on the ongoing trend and I think I finally spotted a nice retracement on the 1-hour chart. I put up some Fibs on the recent upswing and noticed that the 61.8% level is closely in line with the former resistance level around .7575. On top of that, there’s a nice bullish divergence on the 1-hour chart. I don’t know about you, but that smells like pips to me!

NZD/USD Bullish Divergence

I chose to be a tad more patient though and waited for a bit of momentum before going long. I was able to go long around .7605, just above the .7600 major psychological level and right after stochastic crossed. Hopefully .7600 holds because I’ll be jumping ship if NZD/USD plummets below the .7575 area!

I’m aiming for the previous day high around .7640 at first but I’ll be keeping the rest of my position open with a 40-pip trailing stop in case the recent high breaks.

Here’s what I did:

Long NZD/USD at market (.7600), pt1 at .7635, initial stop set at .7560. I risked 1% of my account on this one and I plan to trail my stop after my first PT gets hit.

This is it, guys – My last trade of the month! Pretty please give me some pips? If I still l miss my luck this week, I will probably be extra mean on my April Fools’ Day prank. Mwahaha! I’m half kidding, of course.

Keep in touch with my Twitter or Meetpips account for any updates!