Paper trade: Short NZD/USD 50% @ 0.7381, stop 0.7430

I’ve just shorted NZD/USD at 0.7381 for a 50% position. I tried shorting NZD/USD last week unsuccessfully. But now I’m giving this another try for the following reasons:

1. Significant at 0.75 as described previously, see Fig. 1
2. Short term lower top right below 0.75, see Fig. 2
3. RSI divergence, although this is almost moot now since NZD/USD has been chugging upward relentlessly
4. EUR/USD is making a double top at 1.4850
5. So I’m using this to hedge my EUR/JPY long, in case EUR falls

I’m entering with a half position because the intermediate term trend is still up.

Position Size: 50%

Entry: 0.7381

Stop: 0.7430

Target: 0.7200

Reward / Risk = 181 / 49 = 3.7 > 3

Update: Stopped out overnight at 0.7430 (-48.60 pips) for a loss of $15.01.

NZD/USD

NZD/USD, 3-hour

Related posts:

1. Paper trade: NZD/USD short stop entry 0.7262, exit trailing stop 0.7300
2. Paper trade: Short NZD/USD 100% @ 0.73701, stop 0.7480
3. Paper trade: Short USD/CAD @ 1.0573, Stop 1.0640, Target 1.0415
4. Paper trade: Short USDCAD @ 1.0671, Stop 1.0756, Target 1.05761
5. Paper Trade: retrying AUDJPY short @ 84.52, Stop 85