Ka-ching, ka-ching! I’m locking in some pips with these long-term range setups on NZD/USD and EUR/AUD with these adjustments.
Long NZD/USD Trade
This pair finally seems to be gaining traction on its bounce after a bit of consolidation below the .7000 handle. I was able to hop in just above the .6900 level on what seemed to be a strong pop higher, and now I’m just thanking my lucky stars that the Kiwi has still managed to outpace the dollar.
I’ve had my initial stop below the range support and the .6800 handle, but now I’ll be trailing it to entry in order to have a risk-free trade. Price seems to have busted through the .7000 handle after all, so I’m a bit more confident that buyers have the upper hand.
Still, I can’t help but worry that trade war issues could eventually dampen global trade activity and overall risk appetite, dragging the commodity-related Kiwi back down. Then again, retaliation from trade allies could hit the U.S. economy hardest first.
For now, I’ll continue to keep close tabs on this long position while Kiwi bulls try to keep charging and aiming for the top of the range.
Short EUR/AUD Trade
As for my other long comdoll position, momentum also seems to be building as this pair has broken below the 1.5300 handle. With that, I can be able to adjust my stop from the initial 1.6225 level down to 1.5475 to lock in some pips from this play.
Stronger than expected Australian retail sales lifted the Aussie earlier this week, allowing it to take EUR/AUD lower despite the improvement in Italy’s political situation. The RBA decision is still coming up, so I’m gonna keep close tabs on this event to see if I should add or close early.
RBA Governor Lowe and his fellow policymakers seemed more upbeat in their quarterly report, which featured upgrades to growth and inflation forecasts. I’m expecting to hear a few digs on trade uncertainties, though.
Apart from that, the quarterly GDP and trade balance due later on in the week could also spur volatility for this pair, so I’ll also be on the lookout for those.
Only medium-tier reports are lined up from the euro zone for the entire week, which suggests that the shared currency might simply react to its counterparts again.
What do you guys think of my adjustments?
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