NZD/USD Signal Update
Yesterday’s signals might have produced a profitable short trade following the rejection of 0.6904, although there was an hourly close previously just a couple of pips higher than that.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6862 and 0.6825.
Put 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.
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 0.6942.
Put 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.
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
As it turned out there is a zone just above the round number of 0.6900 that continues to act as resistance and hold the price down. However we have printed a new flipped level as support at 0.6862 which seems quite strong, so rather as with the EUR / USD pair, it seems that the price is getting increasingly squeezed between bulls and bears with neither really in control at the moment, although the bears (i.e. USD bulls) have the upper hand for time being.
This pair is mildly bullish over the long term, but does tend to range so trades in either direction can make sense.
There are no high-impact events due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.