NZD/USD Forex Signal
|Yesterday’s signals were not triggered, as there was no bullish price action at 0.6802.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Thursday and 5pm Tokyo time Friday only.
Short Trade
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Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6802.
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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 0.6708 or 0.6677.
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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 had become more bearish, despite medium-term strength in the USD, so I was comfortable taking a bearish bias following a rejection of either of the nearby resistance levels. Neither of these levels were reached, but the price fell strongly, so I was at least correct to be looking to the bearish side.
The price now seems to be starting to make a bullish “U” shape which suggests it may be bottoming out now. Another bullish sign is that the NZD appears to be leading the AUD here. I think the price will probably rise from here over the short-term, but 0.6802 looks likely to hold and might provide an opportunity to go short if there is a strong bearish reversal there later.
There is nothing of high importance due today regarding either the NZD or the USD.
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