NZD/USD Forex Signal
|Yesterday’s signals were not triggered, as there was no bearish price action at 0.7287.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7344.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 Trades
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Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7214, or 0.7188.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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.
Yesterday I had a bullish bias, but it did not work out, as the U.S. Dollar made a surprisingly strong showing, even against a generally strong NZD. The price action printed fresh, lower resistance at 0.7287, before close to the second supportive trend line at which the price then turned around strongly as London opened, moving up with some momentum. I still have a bullish bias in line with the medium-term trend, but the bullish case looks weaker. I would not be surprised to see the price consolidate for a while now, with he resistance at 0.7287 capping the price.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 4pm.
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