No dice for this one! Risk aversion came back with a vengeance before NZD/USD could even climb to my short entry order at the .8000 handle. As it turns out, the first day of the EU Summit was a dud as leaders failed to come up with a convincing solution to the ongoing eurozone debt crisis.
Although they did announce a 120 billion EUR growth package, market participants were hugely disappointed by the size of the funds and by the lack of support from other EU officials.
EU leaders still have another day to come up with a better plan, but I’m inclined to think that they will disappoint just the same. Then again, I’m not dismissing the chance that they could pull a rabbit out of the hat (along with a bajillion more euros in bailout funds, maybe?) later on and this might cause huge gaps over the weekend. With too many uncertainties going on, I think it’s time for me to cancel my open orders.
Were you able to catch the huge drop on NZD/USD though? Let me know how your trade turned out because I could sure use some tips from y’all!
See you on the other side of the weekend!
Trade Idea: 2012-06-28 04:29
Time for my last trade this quarter! Can you believe we’re already in the middle of the year?!
This week I’m eyeing a possible resistance at NZD/USD’s .8000 major psychological handle. If you caught my Comdoll Trading Kit this week, you’ll know that the area is lining up with the previous week’s high (.8017) and this week’s top weekly ATR (.8003). Who am I to go against possible inflection points, right?
Despite the fact that NZD is the strongest major currency against the Greenback so far this year (a bit above 2%), I’m putting on a bearish trade, at least for the next couple of days.
See, I’m not really hoping for any miracles at the EU Summit this weekend. I have a feeling that similar to the previous EU Summits, the eurozone officials will come up with nothing more than a plan for a plan. That’s a lot of plannin’ and not enough action!It’s also not helping the Kiwi that New Zealand has been printing less-than-awesome economic data so far this week. Not only did the country clock in another month of trade deficit in May, but the NBNZ consumer confidence reading also fell to 12.6 in June compared to its 27.1 figure in May.
Here’s my plan:
Sell at .8000, place my stop loss at .8060, and my first profit target at .7900. As usual, I’ll be risking 0.50% of my account.
Are you in this trade with me? Don’t forget to read the risk disclosure!
I won’t be placing my orders just yet though, as there are too many wildcards that might inspire price spikes and choppy trading. For one, the EU officials are killing expectations enough that a grain of good news might boost high-yielding currencies.
Not only that, but it’s also the last week of the quarter! Who knows what the companies’ window dressing might do to the Greenback, right?
Are any of you trading this week? My friend @elgitano5720 says that he’s sitting out this week due to the EU Summit weekend. How about you? Don’t be shy to share!
Let’s end the month strong, friends!
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