NZD hasn't been kind to me of late, as I've lost on four consecutive NZD trades I've placed. But when I see an opportunity I think is legitimate, I feel compelled to go for it. Yesterday's daily charts
showed lots of long wicks on NZD, often occurring at a previously established resistance level
or a key moving average. WIth that in mind, I decided to short EURNZD
, where I thought the downtrend was especially clear and likely to continue in light of price action the Euro
is showing relative to other currencies. I'm short EURNZD
at a minor resistance level
of 5821, with my stop at 5921 and my target profit of 5403. This gives me a reward/risk of 4. The trade is very similar to a previous EURNZD
trade I put on; I simply re-calibrated the entry and stop loss levels a bit based on recent price action.