What a time to get bumped off!
My trade had been trading in the green for almost a week, but NZD/CHF just couldn’t break through support at .7800. With the RBNZ rate decision presenting major event risk, I thought it would be prudent to make adjustments to my trade.
I decided to move my stop to breakeven instead of simply exiting near the .7800 handle for a small profit because I felt that there was a decent chance the RBNZ rate decision would serve as the catalyst for the strong move down that I had been waiting so long for. Little did I know that the market had other plans for my trade!
NZD/CHF popped up and kept on climbing after the U.S. retail sales report came out. After a few hours, the market eventually stopped me out at breakeven…. only to come crashing down below .7800 after the RBNZ rate decision! Drats!
Stopped out at .7844: +0 pips / +0%.
While I’m bummed out about seeing the pair break through .7800 after I had exited, I still feel as though I made a smart trading decision by playing it safe ahead of the big event. After all, the rate decision could’ve just as easily resulted in a bull run and handed me a full loss.
I guess I just have to chalk this up to experience. I hope some of you guys had better luck with this trade than I did!
Peace out and thanks for following!
Trade Idea: 2013-03-07 00:20
I ain’t got no plans to trade the pound or the euro ahead of the BOE and ECB rate statements, so I’m trying my luck on an odd cross – NZD/CHF!
Actually, it was my buddy @elgitano5720 who pointed this setup out. I liked it so much, I decided to take it myself.
On the pair’s daily chart is this sort of rising wedge formation. Price just bounced off the top of the range (which has held like a boss every time it has been tested), so I took the liberty of selling this pair at market.In the event the ECB statement turns out to be a risk sentiment-changing event, I think I’ll find myself on the right side of the fence. I really don’t imagine the ECB saying anything to trigger a market-wide risk rally, especially with how things have taken a turn for the worse in the euro zone over the past couple of weeks. I think that there’s a bigger chance it’ll turn out bearish for the markets rather than bullish.
Here’s how I set up my trade:
Sold NZD/CHF at market (.7844), stop loss at .7910, profit target to be determined. Risking 0.50% of my account.
I set my stop just above the resistance zone and .7900 handle to be safe. As for my profit target, I’ll probably look to exit somewhere near the rising trend line, depending on market conditions. In any case, I think this trade presents a pretty sweet risk-reward trade-off since there seems to be a lot of room for price to drop.
What do you guys think of this setup? Share your thoughts below, fellas!
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