NZD/USD Forex Signal

By: DailyForex.com

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

Short Trades

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7035 or 0.6995.

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

· Adjust the stop loss to break even once the trade is 20 pips in profit.

· Remove 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

· Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6925 or 0.6908.

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

· Adjust the stop loss to break even once the trade is 20 pips in profit.

· Remove 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 I had a short-term bearish bias below the trend line, particularly below 0.6975. This has worked out OK, but there is now some support making itself felt at 0.6958. The pattern still looks bearish however, and I would not look to go long here as I think the price is more likely to continue downwards to 0.6925 at least. If the price returns to 0.7000 or 0.7035, any short trade opportunities which might arise there would start to look attractive. Note that the NZD is weaker than the AUD, which gives me more confidence to be bearish here.

Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the NZD, there will be a release of GDP data at 9:45pm.

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