NZD/USD Forex Signal

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s NZD/USD Signals

Risk 0.50%

Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.

Short Trade

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7299.

• Place the stop loss 1 pip above the local swing high.

• 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 Trades

• Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7273 or 0.7235.

• 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.

NZD/USD Analysis

I wrote yesterday that the short-term price action was suggesting a third tap on a bearish trend line, meaning that a move down to about 0.7300 looked like the most likely short-term outcome. This is exactly what happened and a short trade from the trend line would have paid off. The bearish trend line still dominates the picture, as shown in the price chart below. There is also a new lower resistance level at 0.7299 highly confluent with a round number, which means the situation still looks bearish, although we may be seeing a major double bottom form at 0.7273. A sustained break below there would be a bearish sign.

Regarding the USD, there will be a release of Core Durable Goods Orders and testimony before Congress by the Chair of the Federal Reserve at 1:30pm London time, followed by CB Consumer Confidence data at 3pm. Concerning the NZD, there will be a release of ANZ Business Confidence data at Midnight.