NZD/USD Forex Signal

Yesterday’s signals were not triggered, as none of the key price levels were ever reached.

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

Short Trades

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7196, 0.7242 or 0.7261.

• 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 Trade

• Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7110.

• 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 had a bearish bias yesterday, which worked out well as the price has continued to fall over the past 24 hours. There is no reason to change that, as we are still a considerable distance away from the nearest resistance level at 0.7110, and every factor points to still lower prices on the way soon. The price chart below shows a clear pattern of lower lows and lower highs over recent days. There is also a new lower resistance level established at 0.7196, very confluent with the round number at 0.7200, which could provide an interesting short trade opportunity after a bullish pull-back. Another encouraging factor for bears is that the NZD is a little weaker than the AUD, with which it is closely correlated, suggesting this pair is a good bet to benefit from any USD strength generally.

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories at 2:30pm London time, followed by the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm, followed later by the usual press conference.