NZD/USD Forex Signal
|Yesterday’s signals were not triggered, as the bearish price action took place a little way above the resistance level identified at 0.6590.
Today’s NZD/USD Signals
Risk 0.50%.
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 bearish price action on the H1 time frame immediately upon the next touch of 0.6625.
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Put 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 bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.6560 or 0.6544.
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Put 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.
I wrote yesterday that although the advance of the U.S. Dollar had slowed considerably over recent hours, the price here still looked relatively weak. The price may not fall much further as it is very close to support, but I kept a bearish bias today below 0.6590. This worked out indifferently, the price did little over the course of yesterday, but it has turned more bullish in recent hours and looks to be moving up to test the nearest resistance level at 0.6625. I would still be interested in a short trade at a bearish failure at that level, as there is a strong long-term bearish trend with the price trading very close to historic lows, which is a bearish sign. Yet we do see some short-term buying here, and the NZD acting more bullishly than the AUD which is always a relatively bullish sign, so bears need to be a little cautious here and wait for the right moment. If the price breaks convincingly above 0.6625 I would take a short-term bullish bias.
There is nothing important due today concerning either the NZD or the USD.
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