NZD/USD Forex Signal

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 between 8am New York time Monday and 5pm Tokyo time Tuesday.

Short Trade

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6853.

  • 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 0.6790 or 0.6771.

  • 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 last Thursday that the level at 0.6833 looked likely to be the day’s pivotal point, and the longer it took to break down, the stronger I thought the eventual downwards breakdown would be likely to be. This was a good call as the breakdown came quickly and the price fell by almost 40 pips within three hours, so my bearish bias paid off.

It now looks as if the price will drift down to touch the nearest support level at 0.6970. As there is another support level just below it, there could be a major bullish reversal here, but I take no directional bias on this pair today.

NZDUSD

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