NZD/USD Forex Signal
Yesterday’s signals were not triggered, as none of the key levels were reached during the specified period.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trades
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6873 or 0.6902.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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 Trade
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6789.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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 resistance level at 0.6873 had held over the past few hours and may be printing a bearish double top formation. If the price could advance again and trade above that level for a couple of hours it would be a bullish sign, with the next resistance level at 0.6902 being very significant as a long-term high.
The price did not advance but is still holding up as party of a long-term bullish consolidation pattern and is close to some long-term highs. A sustained break above 0.6900 would be a very bullish sign signalling the probability of an extended rise higher. I am definitely more comfortable looking for long trades than short trades over the near term here.
There is nothing of high importance due today concerning 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.
