NZDUSD Forex Signal
|Yesterday’s signals were not triggered, as there was no bearish price action at 0.6800.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trade
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6857.
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Place 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 run.
Long Trade
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6822, 0.6804, or 0.6783.
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Place the stop loss 1 pip below the local swing low.
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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 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.
I wrote yesterday that until the RBA’s meeting minutes were published, I doubted there were going to be any good opportunities coming here. I was right, that event, plus the weaker than expected New Zealand inflation, has pushed up the NZD against a slightly weakening USD, and has produced a more bullish picture. However, the market is now flattening out ahead of the Chair of the Federal Reserve’s upcoming testimony, which is likely to produce the major move of the day later. I am bullish above 0.6857.
There is nothing important due today concerning the NZD. Regarding the USD, the Chair of the Federal Reserve will be testifying on the Semi-annual Monetary Policy Report before Congress at 3pm London time.
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