NZD/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken from 8am New York time until 5pm Tokyo time.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6298.
* 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 ride.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6590.
* Place 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.
* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
NZD/USD Analysis
I wrote yesterday that this pair isn’t really going anywhere and so it proved to be more or less even after we have just had really key events from both of the central banks in charge of these currencies. The price did fall but not by an awful lot.
Turning to the chart below, we can see that a bearish trend line has formed and seems to be influencing the price. We cannot draw a lower trend line yet but if we make another suitable low we will find ourselves in a narrowing triangle signalling a possible breakout of some power. Until then, it is possible to reply upon a failure to rise back at the trend line as a place to look for a short trade, and of course at the 0.6590 level above that which remains key.
Concerning the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims data at 1:30pm London time. There is nothing due today regarding the NZD.