NZDUSD new shorting opportunity Ok I’ll admit it! I didn’t really trade this pair all that good / well of late. Not that I lost some pips, that’s all good and comes with trading. It because I allowed myself to get caught in a smaller pattern inside of a similar large pattern. Up sloping channels. I played the small pattern only so, so! Took some pips then gave some back and in the end I was down like 10 pips or so. Not the end of the world. Doing nothing would have given me more. Lol
I’m a trader at heart so when I see a opportunity I’ll try it in smaller size at first and add into it. That’s just me though. At least you all reading this get honesty in my posts. I post the bad along with the good, sprinkled with trading thoughts of the occasional so-so trades as well.
On my daily chart we have this up sloping channel and it’s to late in the move to go long not to mention the divergent RSI. In addition to that we are still broken out over that black down sloping trend line, a line going back to 2014. It big and bullish for this pair so long as we are over it. So why talk about taking a short?
This environment we are currently trading in isn’t easy at all. I mean stocks are down, oil up, gold down, dollar down, and I could go on. With all of these things moving without correlating much who knows what and where to trade. Right?
Well I see a trend line and divergent RSI and the DXY still above it breakout zone and USDCAD pointing yo higher prices / stronger dollar, and oil over done in the short term—it is only a matter of time and stocks could sell off some before bouncing again. Ok I’m rambling some.
Point is go to longer chart patterns and shorter TP zones and larger size only in the trends direction even if that is all over the place.
Clearly a NZDUSD is in a up trend, but also as clearly it bumping up against a bigger pattern top. Even inside if this pattern there is counter trend opportunities with well defined risk zones worth taking imo. Just don’t forget to limit risk. I tend to trade around a core position while building it up so this limits my risk by also taking some small bites off.
Well that all for now. I’m liking the counter trend opportunities around the 6800 fir a short term trade. I’m really liking this pair to tag the 70 level at some point though. Watching and trading.
All the best everyone.
