NZD/USD Forex Signal
|Yesterday’s signals produced a profitable short trade from the bearish inside candlestick which broke down after reaching the resistance level identified at 0.6902. This trade has just reached the minimum 20 pips of profit and hopefully will now fall further.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time Thursday
Short Trade
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6902.
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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 run.
Long Trades
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6853 or 0.6833.
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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 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.
NZD/USD Analysis
I wrote yesterday that the picture had become less bullish, and the NZD was more bearish that the AUD which was another bearish sign. I would be prepared to take a short from a rejection of 0.6902. This was a great call as such a profitable price action trade did emerge towards the end of the New York session yesterday. A sustained break above 0.6902 would be a bullish sign, while a break below 0.6833 would be a bearish sign. There is no long-term trend, but we are moving towards a bullish trend and potential new multi-week highs.
Regarding the USD, the Chair of the Federal Reserve will be testifying before the House of Congress on its Monetary Policy Report at 3pm London time. Concerning the NZD, there will be a release of ANZ Business Confidence data at Midnight.
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