NZD/USD Forex Signal

Adam Lemon DailyForex.com

Last Thursday’s signals produced an excellent and very profitable long trade from the bullish pin candlestick which rejected the support level identified at 0.6532.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period.

Short Trades

Go short 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 was quite bullish last Thursday, but I thought that the key support level would be at 0.6557 and I was wrong, it was the level below it at 0.6532 which really made the difference and produced an excellent long trade. The NZD has been more bullish than the AUD and has been rising nicely for some time and is also getting a boost from recently released higher than expected New Zealand inflation data.

The medium-term picture is bullish, but the price is having difficulty advancing beyond the round number at 0.6600. If the nearby support levels at 0.6579 or 0.6557 hold then that will be a bullish sign suggesting that we can expect a further rise to come.

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

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.

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