Sunday, June 21, 2015

EURNZD Sell Recommendation June 22nd 2015

Currency Pair: EURNZD
Timeframe: Hourly Chart (H4)
Recommendation: Sell EURNZD @ 1.6450
Take Profit @ 1.5000
Stop Loss @ 1.6700

The EURNZD has rallied on the back of New Zealand weakness, but given the uncertainty in the Eurozone I think this currency pair provides a great trade on the short side. Just keep in mind that the EURNZD may be the best carry trade currency pair right now given the big disconnect in interest rates.

The total downside potential is roughly 1,500 pips, but I will protect my profits with a stop loss before we get to that level. The move lower could be short, but very powerful especially after a breakdown below the low end of its resistance level.

 PaxForex

3 comments:

I really like the profit / risk ratio on this one. Entered at 1.6530. Let's see what happens!

Sorry about posting twice, but I'm curious what kind of profit protecting trailing stop you like to use, if any? I'm kind of new to this, but I'm thinking one equal to the potential downside might be alright?

Hi John, I am always looking for a trade with much more profit potential than the potential for a loss. As far as protecting my profits with a stop loss I do not have a static figure (for example 50 pips, 100 pips, etc.). It all depends on the trade, it is a dynamic market and some currency pairs a more volatile than others. I trade what is there on the charts and not what I want to happen. Let's put it like this: You can have a static SL and say you want to earn 50 pips. Good luck forcing the market to give you what you want. Since luck has nothing to do with trading, I look at price action and set my SL to protect my profits according what's there. Hope this helps.

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