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With the weekend and OPEC meeting quickly approaching , I decided to close down my NZD/USD long position to take profit and avoid event risk.

Long NZD/USD

Original Trade Idea: Forex Trade Idea: NZD/USD Grind Higher

NZD/USD 4-Hour Forex Chart
NZD/USD 4-Hour Forex Chart

As I mentioned in my USD/CHF long trade review yesterday, I would probably close my NZD/USD trade ahead of this weekend’s event risk in the form of the OPEC meeting.  This meeting is likely to stir up some volatility come Monday morning, and I think with the probability high that we don’t see a production freeze deal because of Iran and Saudi Arabia, the recent oil rally could be in for a reversal, taking down with it risk-on and commodity-linked assets like the commodity currencies.

So, there’s a better-than-even chance that we could see NZD/USD turn back to the downside next week, which is why I decided to close down my long position manually (.6902) to lock in profit and avoid weekend event risk: 

Total: +98 pips/+0.17% gain on 0.50% risk

Overall, I’m still bullish on this pair in the short-term, so I will be looking for another forex opportunity to go long if it makes to do so after the OPEC meeting.  I’ll post a new trade idea when the time is right, but until then, thanks for checking out my blog and have a great weekend!

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.