NZD/USD Forex Signal

Yesterday’s signals were not triggered, as the bullish price action took place a little way below the support level identified at 0.6541.

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trades

• Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6579 or 0.6635.

• Put 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 Trades

• Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6557 or 0.6532.

• Put 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 with the short-term price action looking a little bearish, I was less optimistic today (for a bullish move), as it seemed the U.S. Dollar was coming back a little generally. A retracement back to the nearby support at 0.6562 seemed to be on the cards. I would be bullish if there were a firm bullish bounce there later.

The price actually fell below that level, so this was a good call, however recent hours have seen the NZD advance quite strongly and print new higher support at 0.6557 which looks like becoming an attractive level for a bullish bounce to trigger a long trade. However, bulls should beware the lower resistance level not far from the current price, at 0.6579, but bears should be extremely careful trying to go short from that level today.

There is nothing important due today concerning either the NZD or the USD.