NZD/USD Forex Signal
|Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at 0.6851.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Short Trades
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Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6873 or 0.6902.
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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 0.6789.
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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 last Thursday will little certainty that it looked like we would see lower prices still, maybe the price will even go down as far as 0.6789 which looked like to be relatively strong support if reached. This was not a successful forecast – the price consolidated for a few hours, failing to move down, before beginning a bullish leg which extended all the way to the resistance at 0.6873. This resistance level has held over the past few hours as at the time of writing and may be printing a bearish double top formation. If the price can advance again and trade above that level for a couple of hours it would be a bullish sign, with the next resistance level at 0.6902 being very significant as a long-term high. Another bullish sign is that the NZD is stronger than the AUD.
There is nothing of high importance due today concerning the NZD or the USD.
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