The forex market went into super risk-on mode to kick the week off and with such a big move, I gotta adjust my EUR/NZD & GBP/AUD ideas.
Original Trade Idea: Forex Trade Idea: EUR/NZD Short
Whether it was the bounce in commodities and equities or not, the world went into risk-on mode to start the week. And combined with the disappointing PMI data released from Europe earlier in the session, EUR/NZD had enough to break that minor support area that stopped me on my previous short attempt.
With the market falling quickly and profits rising, it’s time to adjust to lock in profits and create a “risk-free” trade. I have decided to roll down my stop from 1.7375 to 1.6675 to lock in a 0.30% on my 0.50% risk. I will trail every 250 pips from current levels to continue to lock in profits.
No additional orders to add to this position for now, but I am going to watch for a pullback to potentially enter another position. For now, I’m staying in watch mode and letting EUR/NZD do its thing.
Original Trade Idea: Forex Trade Idea: GBP/AUD Downtrend
For GBP/AUD, we had the broad bullish move in risk help push this pair lower, but also the latest developments on the “Brexit” situation really pummeled the bulls at the open of this week.
Unfortunately for my short trade idea, this was all before hitting my short orders at 2.0200, which were narrowly missed by around 20 pips or so….grrrrrr!!!
With such a strong move lower, there’s no way this trade is still valid with its current framework, so I closed my open orders at 2.0200 and 2.0400. No trade.
I will continue to watch this pair, along with all Sterling pairs as this could be the start of a bigger move, but at the moment, it’s something I don’t want to chase right now given that this Brexit news reaction could be a short-term catalyst. We won’t know until probably later in the week, so stay tuned!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.