NZD/USD Forex Signal
|Yesterday’s signals were not triggered, as there was no bullish price action at 0.6557.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
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Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6579 or 0.6635.
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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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Long entry following bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.6532 or 0.6497.
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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.
NZD/USD Analysis
I wrote yesterday that the medium-term picture was bullish, but the price was having difficulty advancing beyond the round number at 0.6600. If the nearby support levels at 0.6579 or 0.6557 hold then that would be a bullish sign suggesting that we can expect a further rise to come. These levels did not hold, and although the price has recovered somewhat after yesterday’s fall, these were good pivotal levels to judge whether being bullish was worth it.
The price is now in a wide-swinging consolidation pattern, and there is some evidence that the nearest support level at 0.6531 has already had an effect and pushed the price up. I have no directional bias on this pair today, and I think the best potential opportunity is likely to come at a failure to break above the resistance at 0.6579. If this level is tested and holds, it is likely to be a bearish sign later.
There is nothing important due today concerning either the NZD or the USD.
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