Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7483.
Put 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 Trade 2
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7400.
Put 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.
Short Trade 1
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7550.
Put the stop loss 1 pip above the local swing high.
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.
Short Trade 2
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7683.
Put the stop loss 1 pip above the local swing high.
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.
NZD/USD Analysis
This pair has become very interesting, as over the past few months the NZD has been the strongest currency against the USD and seemed poised to benefit most from the slowdown and possible reversal of the long-term bullish USD trend.
However the NZD seems unable to break up past 0.7750 and the area from 0.7700 to 0.7800 has been both key support and resistance and this is plainly visible on the weekly chart.
Now it seems this pair is breaking down and the next two key supports, just below 0.7500 and at 0.7400, will be crucial in determining whether the pair ranges or begins to break down again.
A rate cut is expected in New Zealand but if that expectation changes we will probably see this pair challenge 0.7750 again, especially if the Non-Farm Payroll data on Friday are poor.
There are high-impact events scheduled today concerning both the USD and the NZD. There will be a release of U.S. Trade Balance data at 1:30pm London time, followed later at 3pm by U.S. ISM Non-Manufacturing PMI. After New Zealand opens there will be a release of GDT Price Index data followed by Employment Change and Unemployment Rate data at 11:45pm London time.