Just a quick update on my EUR/NZD forex trade… I’ve decided to close my short position ahead of the RBNZ interest rate statement and here’s how it all turned out:
Among the euro pairs that sold off immediately after the ECB rate statement, EUR/NZD didn’t have much of a sustained reaction. The pair even pulled right back up to my entry zone after the RBNZ made its monetary policy statement!
Thank goodness I was able to take my profits and run while price was still stuck at the 1.5600 handle, as I anticipated a less hawkish RBNZ announcement. I ended up with 150 pips or a 0.36% gain on my account, part of which is from the positive carry. I know it ain’t much but a win is still a win, right?
For now, I’m still bearish on the euro, but I think I might be better off looking for a stronger commodity currency to short it against. Got any tips?
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