NZD/USD Forex Signal - 2 November 2015

NZD/USD Signal Update

Last Thursday’s signals expired without being triggered as the bearish price action was a little higher than the anticipated resistance at 0.6704.

Today’s NZD/USD Signals

Risk 0.75%

Trades may only be taken from 8am to 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 touch of 0.6704.
Put 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.
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 a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6631.
Put 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.
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 a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6872.
Put 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.
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

The NZD has been the strongest of all the major global currencies over recent weeks, but the chart shows it has been making lower highs against the USD over the last two weeks.

The end of last week saw a nice small consolidating triangle that gave a bullish breakout, but it seems we are again failing to make a new high and instead we may be returning to support at 0.6704. I do not have a great deal of confidence in this support level, I expect the area at around 0.6640 to 0.6630 or so to be much better support.

NZDUSD

Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. There is nothing due concerning the NZD.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.