Quite a busy time for comdolls, huh? Here’s how it’s going down for my latest trade ideas on NZD/USD and CAD/JPY.
Long NZD/USD Trade
Trade troubles don’t seem to be going away anytime soon, so it’s about time that I jump out of this long Kiwi position. Fortunately, I was able to adjust my stop just slightly above entry to catch a few pips right before price dropped back to the range support.
In hindsight, I do wish I was able to close at a much better price just above the .7000 handle. Around that time, though, I think I was still holding out hope that the U.S. and China could hash things out.
Still, I’m pretty happy with the 50 pips (0.17% gain) that I managed to snag on this long-term range bounce. Think I should switch sides now?
Short CAD/JPY Trade
My risk-off bias could play out better with this short CAD/JPY idea instead of taking a long dollar position. After all, a trade war could still hit the U.S. economy hard as the E.U. and China are threatening to retaliate.
I was able to hop in on a break of the 83.00 handle, setting my stop past the right shoulder and a target of the same size.
The oil-related Loonie is starting to slide as the OPEC decided to increase its output in order to stabilize prices amid lower production from Iran and Venezuela.
On the flip side, the Japanese yen is able to rake in some safe-haven flows while global stock markets tumble and traders also seem hesitant to buy up the U.S. dollar.
Weakening expectations for a BOC hike are also taking their toll on the Canadian dollar, especially since NAFTA uncertainty is still in play. I’ll keep close tabs on speeches by BOC head honcho Poloz this week to gauge if he will signal a shift in bias before the actual central bank announcement in July.
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