NZD/USD Forex Signal - 6 January 2016

 

NZD/USD Signal Update

Yesterday’s signals were not triggered and expired.

 

Today’s NZD/USD Signals

Risk 0.75%

Trades must be entered between 8am New York time and 8am Tokyo time today only.

 

Long Trade 1

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6600.

* 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.

 

Long Trade 2

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6500.

* 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 0.6693.

* 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.

 

Short Trade 2

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6770.

* 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

The USD is strong everywhere, even now against the NZD which had been holding up to some extent. The price has broken below the previously supportive round number of 0.6700 and this area should now probably provide some resistance. There is plenty of USD data coming up later after New York opens and if there are any surprises that weaken the USD, this could be one of the better pairs to use to exploit that, along with USD/JPY.

NZDUSD

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment change at 1:15pm London time, followed by Trade Balance data at 1:30pm and ISM Non-Manufacturing PMI data at 3pm. Finally there will be a release of the FOMC Meeting Minutes at 7pm.

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.