With the Reserve Bank of New Zealand coming up soon with the latest monetary policy decision, decided to take some profits off the table on my AUD/NZD short trade.
Trade Adjustment: AUD/NZD Resistance Retest?
In my last trade adjustment update nearly two weeks ago, I took some profits off of my AUD/NZD short position, rolled my stop down to 1.0380 and added another order to short at 1.0350. Since then, made its way lower to break the 1.0300 psychological level, but the bears couldn’t keep the momentum lower and we saw the pair bounce up to 1.0350 (triggering my short orders) and eventually topping out around 1.0370. And one last attempt lower was made by the bears this past week, only to be thwarted by the bulls today to push the pair to current trading levels around 1.0330.
Again, with the RBNZ right around the corner, I decided would be a good time to lock in further profits. I don’t know if the RBNZ will continue to stay optimistic as they did at their last monetary policy meeting (which sparked a big Kiwi rally), or if they will lean towards staying stimulative, like what we’re seeing the other major central banks, including the Federal Reserve and European Central bank in the past month. So I decided to close down 75% of my position manually at 1.0334 and my stop will remain at 1.0380.
It’s wait-and-see for now, and if the market goes in my favor after the RBNZ event and my remaining position stays open, I’ll re-assess the trade to see if it makes sense to add back to the position or close it all together. Stay tuned for that or a full trade review coming soon!
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