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After an unexpected strong run in my favor, I decided on Friday to close my long NZD/CHF position to lock in a solid profit to avoid weekend risk. Here’s a quick review!

NZD/CHF Long Setup

NZD/CHF 1-Hour Forex Chart
NZD/CHF 1-Hour Forex Chart

After entering a half position to go long on NZD/CHF at 0.6000 (with additional orders to buy at 0.5930) after an upside triangle break, the pair didn’t take long to continue the rally higher thanks to the broad risk-on sentiment, fueled by expectations that economies are set to bounce back soon now that pandemic lockdowns around the world are ending (especially New Zealand who just went covid-free!).

With a solid move in my favor to trade above the 0.6100 handle, and strong momentum seemingly still in play, I decided last Tuesday to reduce my risk by rolling up my stop to just under my entry, and I increase my potential profit by rolling up my target from 0.6200 to 0.6300.

And just a few days after that, NZD/CHF shot up even faster, nearly retesting my new max profit target at 0.6300 before slowing down and pulling back. On Friday, I decided that I caught enough of the move and I wanted to avoid weekend risk, so I closed my position manually (0.6255) for a great return-on-risk taken. 

Total: +255 pips avg. / +0.91% gain on 0.50% risk taken

Overall, this was a very good trade, riding the main “reopening theme” higher on a solid technical setup, but I definitely could have been bigger in the trade, especially since momentum remained strong during my adjustment last Tuesday.  I probably should have added to the position then, but I was a little skeptical that this rally still has legs so I played it safe.

Well, 0.6300 still has yet to be tested, so I may prove to be correct with taking off the trade now, but if I am wrong and the pair does break above that level and holds, I will look into re-entering that position after a re-assessment of the markets.

Stay tuned for that update if it comes, and as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.

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.