NZD/USD Forex Signal

Last Thursday’s signals were not triggered, as there was no bearish price action at 0.6917.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be taken between 8am New York time and 5pm Tokyo time today.

Short Trade

• Go short immediately upon the next touch of 0.7000.

• Place 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 run.

Long Trades

• 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 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 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 there seemed to be some latent weakness in the NZD or at least a bearish effect from the resistance level above 0.6900 I had identified then. I thought that the medium-term odds remained with the bulls, however, so long trades after bearish pullbacks could still be interesting. A break above 0.6920 would have been a very bullish sign. I was wrong to some extent as although 0.6920 was broken, the price ended up pulling back, although it took some time to happen.

I think the picture is still relatively bullish, but the price will need to advance soon to confirm that. A long trade from a strong bullish bounce at 0.6873 would look attractive and cause me to take a bullish bias.

There is nothing of high importance due today regarding either the NZD or the USD.