NZDUSD Forex Signal
|Last Thursday’s signals were not triggered, as there was no bullish price action at 0.6879.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
-
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6956 or the descending trend line shown in the price chart below which is currently sitting at about 0.6838.
-
Put the stop loss 1 pip above the local swing high.
-
Move the stop loss to break even once the trade is 20 pips in profit.
-
Take off 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
-
Long entry following some very convincing strongly bullish price action on the H1 time frame immediately upon the next touch of 0.6873 or 0.6858.
-
Put the stop loss 1 pip below the local swing low.
-
Move the stop loss to break even once the trade is 20 pips in profit.
-
Take off 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 that the probable direction looked less certain, but a bearish bias still looked correct. In fact, the price has refused to move much lower and is starting to create a slightly bullish structure. Despite this, I see the bigger picture as still bearish, as the dominant higher descending trend line is still intact. The New Zealand Dollar has been relatively weak and the U.S. Dollar very strong, so I would still prefer to look for short trades, and to take a cautiously bearish bias below 0.6956.
There is nothing due today concerning either the NZD or the USD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.