NZDUSD Forex Signal
Yesterday’s signals were not triggered as there was no bullish price action at 0.7347.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trades
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7374 or 0.7460.
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Put 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 ride.
Long Trades
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Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7326 or 0.7273.
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Put the stop loss 1 pip below the local swing low.
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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 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
Yesterday I wrote that a long trade looks unlikely to work well unless the conditions change, though I thought this pair is likely to give more profit from a good long trade than a good short trade, as the long-term condition is relatively bullish. This was a good reflection of what happened, with the price breaking a little lower before finding new support to rise from at 0.7326. However, the picture has not truly changed, the price is still moving within a formation which is almost a bearish price channel, so it seems impossible to make a confident forecast on this pair today.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm 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.
