Woot woot! More pips in the bag! EUR/NZD carried on with its dive, breaking below the 1.4700 major psychological support and allowing me to roll my stop lower to lock in more gains. In case you missed it, make sure you read my initial idea first.
In my previous update, I mentioned that I trailed my stop just below my entry at 1.4915 after price broke below the mid-channel area of interest. This signaled that it is gaining downside momentum towards the channel support near the 1.4500 handle but that it needs to clear the December lows at 1.4700 first.
Now that the pair is trading below the 1.4700 mark, I’ve decided to lock in a few more pips on this swing position. I’m also considering pressing my advantage as price approaches my profit target at 1.4515, but I gotta look at the upcoming market events first.
New Zealand has its quarterly jobs report due in the next Asian trading session, and analysts are expecting to see slower gains of 0.8% for Q4 compared to the previous period’s 1.4% increase. However, the jobless rate is expected to improve from 4.9% to 4.8% but this might be a product of weaker labor force participation. The labor cost index is expected to come in at 0.5%, indicating an increase in wages from the earlier 0.4% figure.
As for the euro zone, CPI flash estimates are due today and if Germany’s preliminary CPI reading is any indication, price pressures aren’t looking that strong just yet. Still, the headline flash CPI is projected to advance from 1.1% to 1.5% while the core reading could hold steady at 0.9%. The region’s flash GDP estimate is also due today and a slightly stronger growth figure of 0.4% is eyed.
With my adjustments, I’m able to lock in 140 pips or a 0.18% gain on my account. As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups.
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