NZD/USD – Close Trade

Close Trade: 2008-09-25 08:46

The US just released economic data this morning with much weaker than expected results in jobless claims and durable goods orders. This poses to be US Dollar negative and now with reports that the bailout package will probably go through, we may see a return to risk. This poses to be negative for my position, so I’ve decided just to close for a small profit rather than loss and wait until we see clearer waters.

Close at market (.6880)

Total: +20 pips/ +0.13%

Not sure when traders will start jumping back into the market, but for now I think I’ll just sit on the sidelines until there is more certainty – when the official bailout plan has been passed. Stay tuned!

Close Trade: 2008-09-25 08:46

The US just released economic data this morning with much weaker than expected results in jobless claims and durable goods orders. This poses to be US Dollar negative and now with reports that the bailout package will probably go through, we may see a return to risk. This poses to be negative for my position, so I’ve decided just to close for a small profit rather than loss and wait until we see clearer waters.

Close at market (.6880)

Total: +20 pips/ +0.13%

Not sure when traders will start jumping back into the market, but for now I think I’ll just sit on the sidelines until there is more certainty – when the official bailout plan has been passed. Stay tuned!

Trade Update: 2008-09-23 10:26

My short entry orders has been triggered to go short at .6900, and after spending sometime around .6950, the pair has fallen back into profit territory below .6900.

Today, the main event for the markets will be the testimony to the US Senate from Federal Reserve Chairman Ben Bernanke and US Treasury Secretary Henry Paulson. The markets are currently pretty quiet as we watch to see what’s in the bailout plan and it will pass, but I’m sure volatility will return as soon as the outcome this event unfolds.

So, I will sit and hold onto my position for now and see if the markets like the bailout plan or not, and if it gets passed. If they don’t or it doesn’t pass, then we could possibly see a return to risk aversion and a sell off in carry. If it does pass and traders like it, then a return to the upside may be in order for NZD/USD. We’ll just have to wait and see. Stay tuned!

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Trade Update: 2008-09-23 10:26

My short entry orders has been triggered to go short at .6900, and after spending sometime around .6950, the pair has fallen back into profit territory below .6900.

Today, the main event for the markets will be the testimony to the US Senate from Federal Reserve Chairman Ben Bernanke and US Treasury Secretary Henry Paulson. The markets are currently pretty quiet as we watch to see what’s in the bailout plan and it will pass, but I’m sure volatility will return as soon as the outcome this event unfolds.

So, I will sit and hold onto my position for now and see if the markets like the bailout plan or not, and if it gets passed. If they don’t or it doesn’t pass, then we could possibly see a return to risk aversion and a sell off in carry. If it does pass and traders like it, then a return to the upside may be in order for NZD/USD. We’ll just have to wait and see. Stay tuned!

Trade Idea: 2008-09-21 20:24

comdollsff

Greetings Forex friends! A simple Fibonacci play is forming on NZD/USD…Let’s check it out!

Keeping it simple to start out the week as I have a 4 hour chart up on NZD/USD. The pair is still in a downtrend on a longer term, but we can see the a retracement has brought the Kiwi up to the 61% Fibonacci level. This move is based on risk appetites growing after the US government’s proposed plans to stem financial system meltdown in the US and possibly the globe. Also, it appears investors are also buying back some commodities as commodities rally along with equities on Friday.

So, I’m basing my first trade idea of the week mostly on technicals, but we can’t completely ignore the fundies. We are in the middle unprecedented times, so the level of uncertainty remains high.

As we have experienced in the past week, sentiment can change on a dime as we saw swings of 200 to 300 pips a day in the US Dollar pairs. This volatility may continue as the details of the $700B bailout plan may be released soon. Will traders like what they hear? Is this the beginning of the end of the credit crunch? Who knows, but it would be prudent for a trader to trade with lower risks during erratic environments such as the on we are currently witnessing.

With that said, I’d like to:

Short NZD/USD at .6900, stop at .7050, pt1 at .6750, pt2 at .6500

Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.

I’m actually going into this with a smaller position than normal to adjust for the wide stop. Let’s get ready for another wild ride this week…stay tuned my friends! :)

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