NZD/USD Forex Signal
|Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7240.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7150.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
I was correct yesterday to be bullish on this pair, as it continues to show upwards movement and has printed a new higher support level at 0.7188. I would not look to use this level as it has already had a lot of contact, even though it has successfully held the price up. An interesting development to watch out for would be a fast drop back to the medium-term trend line which is currently sitting at about 0.7150, a half number. Although there is a clearly bullish medium-term trend, the resistance at 0.7240 could be expected to be strong as it is close to the key psychological number of 0.7250.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.
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