NZD/USD Forex Signal
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trade
-
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6800.
-
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
-
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6750.
-
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.
I wrote last Thursday that I would take a bearish bias if the price could get established below the 0.6750 level, after the USD CPI data has had at least an hour to be digested by the market. This did not happen, although late in the Asian session the price did take a dip below there for a few hours before rebounding back up. Although the picture looks short-term bullish, there is nothing here to change the wider picture. That might change later when the RBA’s meeting minutes are published, as there is some uncertainty around Australian monetary policy right now, and the AUD can strongly influence the NZD. Until that release later, I doubt there are going to be any good opportunities coming here.
Regarding the USD, there will be a release of CPI data at 1:30pm London time. Concerning the NZD, there will be a release of CPI data at 11:45pm.
Author
Adam Lemon
DailyForex.com
Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
