NZD/USD Forex Signal

Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6943.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be taken before 5pm Tokyo time, over the next 24-hour period only.

Short Trade

• Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6996.

• Place the stop loss 1 pip above the local swing high.

• Adjust the stop loss to break even once the trade is 20 pips in profit.

• 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

• Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6873.

• Place the stop loss 1 pip below the local swing low.

• Adjust the stop loss to break even once the trade is 20 pips in profit.

• 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.

NZD/USD Analysis

I wrote yesterday that I had a weakly bullish bias. This did not work out very well, although I did note that the longer 0.6943 held up, the stronger the bullish picture would look, and the level did not hold for very long. Once it broke, we saw a fall in the price, although it is notable that the NZD is holding up better than most o9ther “risk” currencies in the current “risk off” sentiment environment. The price is now finding some support at 0.6907 close to the round number as well as a supportive trend line, so there might be some buying here. However, I would not want to take a long trade from here just yet. I have no directional bias, partly because there is major news due for both sides of the pair over coming hours, so we should get a better idea of direction later in the forthcoming Asian trading session.

Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Concerning the NZD, there will be a release of the RBNZ Financial Stability Report at 10pm, followed by testimony from the Governor of the RBNZ beginning at 2:10am.