Bah, I spoke too soon! Just after posting my forex trade updates on my recent setups, prices popped up and stopped me out of my short positions. Here’s how it all turned out:
Short NZD/USD: Rising Wedge Breakdown
So much for expecting further declines for the Kiwi! I thought that the RBNZ’s announcement about implementing measures to curb housing inflation pretty much confirmed that the central bank is gearing up for a rate cut. Well, it probably does, but it looks like Kiwi bulls are feeling all the more hopeful that this would stoke stronger economic prospects later on.
In retrospect, I probably should’ve just closed my trade early ahead of today’s New Zealand retail sales release, which printed much stronger than expected results and triggered my stop in the process. With that, I ended up with a measly 25 pips on this short forex position, which isn’t too bad. I do feel a bit disappointed about erasing my recent wins though!
Short AUD/JPY: Reversal Pattern Forming?
This was one was a little more iffy from the get-go, as I now realize that I was too excited to hop in a short trade without waiting for confirmation from the double top pattern. As it turns out, that potential reversal formation turned into an ascending triangle pattern, which later on saw an upside break and cost me 150 pips or a full 1% loss on my account.
I guess my biggest takeaway from these forex trades is that I should be more quick about making adjustments, knowing that interest rate cuts no longer translate to sharp declines and prolonged downtrends these days. It seems that market watchers have already priced in these easing situations a long while back and are now moving on to anticipating better economic performance from Australia and New Zealand (and even China!) in the coming months.
Looking forward to bouncing back next week! Share your forex tips with me if you’ve got any!
Cheers,
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