NZD/USD Forex Signal
|Yesterday’s signals were not triggered, as there was no bullish price action at 0.6765.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, over 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 0.6888.
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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 Trade
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Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6698.
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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 picture looked even more bearish, with a clear medium-term bearish price channel standing out in the chart. This was a good analysis as the price has continued to respect the channel in the chart although it is moving in wide swings so may be hard to exploit. Support and resistance levels are very far away so there is really nothing else to use except the price channel.
I have no directional bias and would avoid trading this currency pair today.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
Concerning the NZD, there will be a release of the RBNZ’s Financial Stability report at 8pm London time, followed by the Governor’s press conference at 10pm and testimony on the same before Parliament at Midnight.
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