NZD/USD Forex Signal
|Yesterday’s signals were not triggered, as there was no bearish price action at 0.6853.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trades
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Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6851 or 0.6901.
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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 Trades
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Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6820 or 0.6789.
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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 key test was whether the price could clear the resistance at 0.6853 which was confluent with the half-round number. If it could trade above there, I was ready to take a bullish bias. This was good for only another 20 long pips before the price turned at a new resistance level of 0.6873 and fell quite strongly during the Asian session. It is hard to say what is likely to happen next. The support at 0.6820 may well hold but the resistance levels above also look solid. For these reasons, I have no directional bias today, and any one reversal at a key level is likely to be as good as any other.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be releases of Core Durable Goods Orders and PPI data at 12:30pm London time.
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