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Looks like EUR/NZD couldn’t sustain the sell off and bounced higher into the weekend, triggering my adjusted stop along the way to close me out for a small profit.

Short EUR/NZD

Original Trade Idea: Forex Trade Idea: EUR/NZD Short

EUR/NZD 1-Hour Forex Chart
EUR/NZD 1-Hour Forex Chart

After adjusting my stops to 1.6250 yesterday, it looks like EUR/NZD couldn’t sustain its down move. This was likely due to the broad risk aversion sentiment that hit the Friday London session; possibly on the commodity selloff and a nervous market ahead of next week’s highly anticipated Fed meeting. Whatever the case may be, EUR/NZD popped back up above 1.6200 and beyond, triggering my adjusted stop at 1.6250 to close out my short positions:

1st quarter position: +50 pips
2nd quarter position: +250 pips
Total: +0.29% gain/ 0.58:1 R:R

Overall, it was a good trade setup, and extremely lucky for me that Kiwi bulls took over after the RBNZ cut interest rates again. I am looking to short this pair again sometime soon, but I think with risk aversion still in the forefront, I’ll have to wait patiently for the fear to subside.

That’s it for now. Thanks for checking out my blog and have a great weekend!

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.