NZD/USD Forex Signal
Yesterday’s signals were not triggered, as neither of the key levels were reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trades
-
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6853 or 0.6901.
-
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 0.6820 or 0.6789.
-
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 were several bullish signs, but generally I thought this pair was not bullish enough to be traded long with strong confidence, so I preferred to step back and watch and wait for the time being. This was a shame as the price has continued to rise steadily, printing new higher “stairstep” support at 0.6820. The key test now will be whether the price can clear the resistance at 0.6853 which is confluent with the half-round number. If it can trade above there, I would take a bullish bias, and if the U.S. inflation release is dovish later, this pair looks like a good vehicle to exploit a probably bullish move, so I would take a bullish bias two hours above 0.6853 today.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
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.
