As I said yesterday, this week could be rich in trends. Today proved the correctness of the statement very well. The first opportunity for a trade arouse at the release of the data from New Zealand (Consumer Price Index). Nzd/usd pair was a perfect candidate for a short trade. The pair reacted very negatively to the news and the pair collapsed for about 70 pips from 1.7970 level before finding some support at an even number of 1.7900. As the pair was rather patiently waiting for the news to be released you could calmly place a sell stop order below 1.7974 level and the market would have opened your order and took you to the above mentioned even number. In fact, you could be still in the market now as the pair continues its descent.
If you do not trade Asian sessions you would still have had opportunities during European session. Just look at eur/usd pair. During Asian session the pair was slowly going down and found support at 1.4349 level. It jumped somewhat and formed for us a unique opportunity to place a sell stop order below the level. When London session opened the pair passed through the level and you could have easily gone down with it till an even number at 1.4300. It is best to exit some or all of your position, because ‘big boys’ tend to exit market at those areas.
Aud/jpy pair is still in the range that I wrote about yesterday. I expect it to be broken quite soon (does not matter up or down). I believe news from Australia today at night can be a catalyst for a possible short term trend one direction or another. So, watch price action around the time when news is released and be ready to take action. If you are new to news trading, don’t do it before you practice it a few months on a demo account.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.