NZD/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bullish price action at 0.6853.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time until 5pm Tokyo time Friday.

Short Trades

• Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6853 or 0.6902.

• 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 ride.

Long Trades

• Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6790 or 0.6771.

• 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 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.

NZD/USD Analysis

I wrote yesterday that a sustained break above 0.6902 would be a bullish sign, while a break below 0.6833 would be a bearish sign. The price has continued to move down gently following the peak earlier at the resistance level of 0.6902, breaking below the support level at 0.6853 which I did not think would be very strong, and is now finding firmer support at 0.6833. This level at 0.6833 looks likely to be today’s pivotal point, and the longer it takes to break down, the stronger the downwards breakdown movement is likely to be. I will take a bearish bias on this pair today if the price is below 0.6833 one hour after the U.S. advance GDP data release later.

There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of Advance GDP data at 1:30pm London time.