NZD/USD Forex Signal
|Last Thursday’s signals were not triggered.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6590 or 0.6625.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trades
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6560 or 0.6544.
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Place the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 wrote last Thursday that the chart was still showing short-term bearish momentum, so the decline looked set to continue. This bearish bias worked out well, with the price continuing to fall to near two and a half year lows. The combination of a dovish New Zealand central bank plus the Turkish financial crisis strengthening safe havens such as the U.S. Dollar has produced a bearish “perfect storm” here. Although the advance of the U.S. Dollar has slowed considerably over recent hours, the price here still looks relatively weak. The price may not fall much further as it is very close to support, but I would keep a bearish bias today below 0.6590.
There is nothing important due today concerning either the NZD or the USD.
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