NZD/USD Signal Update
Yesterday’s signals produced a nicely profitable long trade following the pin bar rejecting the identified support level at 0.6719 during the previous Asian session. It is probably a good idea to take some partial profit now.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be made from 8am New York time until 5pm Tokyo time.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of the trend line currently sitting at around 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.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6875.
* 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 price continued falling off from recent highs until it reached my anticipated support level at 0.6719, at which point it reversed with some conviction. The next short-term test will probably arrive close to 0.6800, although there are signs that the medium term trend will push the price down again. If the price does break down, there could be great supportive confluence between the long-term trend line shown in the chart below and the round number at 0.6700 which might provide another opportunity to get long.
Regarding the NZD, there will be a release of the RBNZ Rate Statement and Official Cash Rate at 8pm London time, followed by a Press Conference and then testimony by the Governor of the Bank at 11pm. Concerning the USD, there will be a release of Crude Oil Inventories data earlier at 3:30pm.