NZDUSD Forex Signal

Yesterday’s signals were not triggered as the price sliced cleanly through all three support levels!

Today’s NZD/USD Signals

Risk 0.50%.

Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.

Short Trades

• Short trade entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6859 or 0.6888.

• 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 ride.

Long Trade

• Long trade entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6795.

• Place the stop loss 1 pip below the local swing low.

• 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 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 I would be very bearish if the price was able to get established below 0.6850. The New Zealand GDP data release due later could prove to be crucial in determining what happens next. This happened, the price sliced cleanly below this cluster of long-term, multi-month lows, and although there is some choppy action now, I certainly have a bearish bias on this pair. The chart may need to settle down for a little while, but if the price mostly remains below 0.6850, then I see a move down to at least 0.6750 as likely over the near term.

There is nothing important due today concerning either the NZD or the USD.