Partner Center Find a Broker

I seem to have gotten stopped out on a quick pullback for this one, but all is well since my adjustments allowed me to lock in decent gains on this short trade. Make sure you review my initial trade idea before reading on.

Short EUR/NZD Trade

In my latest trade update, I decided to roll my stop lower once more in order to lock in a few more pips. You see, I previously trailed my stop just slightly below entry for a risk-free trade then moved it down again after price broke below the previous lows at the 1.4700 major psychological mark. At that time, I didn’t want to leave more pips on the table in case New Zealand’s quarterly jobs report missed the mark.

As it turned out, bears needed a bit more energy before going for a dive all the way down to the channel support near the 1.4500 level where I placed my profit target. New Zealand printed a much weaker than expected headline jobless rate that triggered a selloff for the Kiwi, causing the pair to make a small retracement to the mid-channel area of interest around 1.4850 yesterday and hit my adjusted SL in the process.

EUR/NZD 4-hour Forex Chart
EUR/NZD 4-hour Forex Chart

I’m still happy with how this trade turned out, though, as I managed to bag 140 pips or a 0.18% gain on my account with these adjustments. But now that I’m seeing the 1.4800 area hold as resistance, I can’t help but wish that I just added to my position on this pullback or tried to be a tad more patient in holding on to this trade.

Then again, it’s tough to tell if price could make it all the way down to my 1.4525 PT eventually. Besides I can always grab the opportunity to short again if fundamentals still line up for a downside bias on this one. I’ve also got another euro short position with my EUR/AUD trade anyway so I’ll turn my focus on that trade for now.

EUR/AUD 4-hour Forex Chart
EUR/AUD 4-hour Forex Chart

Looks like the 1.4300 mark at the middle of the range kept gains in check and price is now attempting to break below the 1.4135 support area once more. Australia’s reports just came in stronger than expected while China reported slightly upbeat PMI readings yesterday so I’m thinking the Aussie can put up a good fight.

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.

Q4 2016 Trading Performance Review
Read about my trading framework
Risk Disclosure

These are some of our favorite trading books, and receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!

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.