NZD/USD Signal Update
Last Thursday’s signals expired without being triggered.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be made between 8am and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.6250 and 0.6195.
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.
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.
NZD/USD Analysis
This is one of the most strongly trending currency pairs and as such has given lots of short pips to trend traders over recent months. The trend continues but it is looking more and more as if some kind of supportive double bottom has been formed at 0.6250, so another touch forming a triple bottom would be a logical place to look for a counter-trend long trade. That number is also psychologically significant so there is some confluence there.
There are no obvious places to look for a short close by really. The round number at 0.6400 is a possibility and maybe also the swing high at around 0.6460. There are no flipped levels this side of the key number of 0.6500. We did have a nice broken trend line to fade short off a retest from below last week, but it has been tested and broken too much to be really reliable now.
Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Regarding the NZD, there will be a release of ANZ Business Confidence data at 1am.