Caught a bit of both bad and good luck with this trade with the end result being a positive one thanks to strong momentum from the bulls. Here’s a quick review!
Rising Triangle Break on EUR/NZD?
First, the bit of bad luck was that the market did seemingly get all the way down to my buy price at 1.6350, but unfortunately, because of EUR/NZD’s wide spread, it looks like it was the mid-price that got there rather than the Offer price so I wasn’t triggered.
Seeing this a few hours later and not wanting to miss the move, I decided to slightly reduce my position size, keep the same stop and enter manually at 1.6400. This turned out to be a good decision as EUR/NZD seemed to be off to the races from there to the upside, likely due to the fundamental drivers mentioned in my original idea, along with negatively perceived comments from New Zealand Finance Minister Steven Joyce on the recent budget surplus data that came on Thursday.
Fortunately, the momentum continued to start this week and the pair did reach my initial target at 1.6650, and with the impending final election results and decision of which party New Zealand’s First Party will support coming soon, I decided to close my EUR/NZD manually to lock in a profit and avoid the geopolitical risk:
Total: +270 pips/+0.39% gain on 0.50% risk
Overall, it was a great trade and I think it was a good idea to get out rather than taking the chance of giving some profits back. I think I learned from the hard lesson that the French elections gave me earlier in the year.
So, I’m flat for now, but I do have something cooking in the kitchen for the rest of the week. Stay tuned for a possible fresh ideas, and until then, good luck and good trading!
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