This pair didn’t really show the bullish momentum I was hoping for, so I’m hopping out before my stop gets hit. Here’s what I learned.
Long EUR/NZD Trade
Political troubles in Italy seem to have gotten the best of the euro, overshadowing more hawkish ECB remarks and spurring a break below the short-term and longer-term trend lines I was watching.
You see, I jumped in a long position too early on this one but held out hope that the rising trend line visible on the 4-hour chart would still hold.
And hold it did! But only for a few bars.
Euro bears eventually won the tussle and pushed the pair below the 1.7550-1.7600 support zone I thought would hold. I decided to cut my losses around the 1.7525 area before the pair even dipped all the way down to my stop at 1.7475.
Anyway, here’s the damage:
P/L: -250 pips / -0.42%
Looking back, I probably should have been more patient in waiting for a test of the larger trend line instead of giving in to FOMO and going long too early. That way, I could’ve set a wider stop or minimized my losses.
I could’ve also hopped out earlier when that tiny double top formed or when risk-taking kicked into high gear despite the new batch of tariffs imposed by the U.S. and China. But as they say, hindsight is 20/20!
Any comdoll trade ideas you’d like to share to help me bounce back this week?
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