NZD/USD Forex Signal
|Yesterday’s signals produced a long trade from the bullish bounce at 0.6873, however the move has been held down by a new resistance level at 0.6901 suggesting bulls and bears are evenly balanced. The trade is currently at break even and is probably best exited.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time today.
Short Trade
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Short entry immediately upon the next touch of 0.7000.
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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 ride.
Long Trade
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Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6873.
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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 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 was still relatively bullish, but the price would need to advance soon to confirm that. A long trade from a strong bullish bounce at 0.6873 would look attractive and cause me to take a bullish bias. There was a bounce there, but we have also had a clear bearish bounce at 0.6900, so it looks as if the price is stuck right now and quite evenly balanced. This means it is probably unwise to be in any trades until the price gets out of this range between 0.6873 and 0.6901. However, there is a medium to long-term weak bullish trend, so I would be comfortable taking a bullish bias above 0.6873.
Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time. It is a public holiday in New Zealand.
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