NZD/USD Forex Signal - 11 May 2016

NZD/USD Signal Update

Yesterday’s signals would have produced short trades following bearish bounces at both 0.6791 and 0.6807. The first entry would have been a losing trade but the higher entry would seem to be working so far.

Today’s NZD/USD Signals

Risk 0.75%

Trades only can be entered between 8am New York time and 5pm Tokyo time.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6762, 0.6714 or 0.6625.

  • Place 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.

  • 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 Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6862 or 0.6942.

  • Place 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.

  • 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 NZD was pretty bullish yesterday, breaking up past resistance initially and flipping it to support at 0.6762. However the price was not able to clear the resistance just above 0.6800 and the candles there look like they show a clear bearish reversal. A trip down to at least 0.6762 looks probable next.

NZDUSD

There are no high-impact events due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time

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.