NZD/USD Forex Signal

Adam Lemon DailyForex.com

Last Thursday’s signals were not triggered, as none of the key levels were ever reached.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.

Short Trade

Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6802.
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 0.6708, 0.6677, or 0.6655.
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 the price would probably rise from here over the short-term, but 0.6802 looked likely to hold and might provide an opportunity to go short if there was a strong bearish reversal there later. I was correct about 0.6802 holding but wrong about the price rising: it has just gone sideways since last Thursday.

There is no long-term trend in this pair, but the medium-term momentum is with the bears due partly to the strong U.S. Dollar and partly due to the RBA’s statement last week which was seen as a little dovish. As such, I would be prepared to take a bearish bias if (and only if) the price makes a strong bearish reversal at 0.6802. However, it is also worth noting that the price is getting closer to a cluster of three support levels below which are likely to take a while to break down, if at all.

There is nothing of high importance due today regarding 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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