NZD/USD Signal Update
Last Thursday’s signals were not triggered and expired.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered from 8am New York until 5pm Tokyo times today only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6700.
* 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 the bullish trend line currently sitting at around 0.6655.
* 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 3
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6600.
* 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
This is the most bullish pair against the USD. Looking at the chart below we can see there is a clear recent upwards trend, with repeated breakings of support. This means that if the USD disappoints – as the Fed may do tomorrow if they do not hike rates for any reason – the place to be is quite likely to be long this pair, NZD/USD.
It is also very significant that we are approaching resistance at 0.6872 as it is around this area that we will be above prices 6 months ago: we are already well above the price 3 months ago. All this suggests that we are not far from a strong bullish trend becoming established.
However it is quite likely that the USD will regain some strength, in which case we may have already made a medium or long-term high off the resistance at 0.6810. A break below the triple top at 0.6780 might signal a fall back to 0.6700 if it happens in the next few hours.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of CPI data at 1:30pm London time.