NZD/USD Forex Signal - 8 June 2016

NZD/USD Signal Update

Yesterday’s signals were not triggered.

Today’s NZD/USD Signals

Risk 0.75%

Trades must be taken from 8am New York time until 5pm Tokyo time.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6945 or 0.6862.

  • 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 ride.

 

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7107.

  • 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 ride.

NZD/USD Analysis

We have seen continued bullishness which is not a surprise at all as the NZD is one of the strongest currencies, while the USD has clearly been the weakest since last Friday.

The most notable development was the sudden dip down to and strong bounce up from the level at 0.6945, which was not only a key swing high but also this week’s opening price. That suggests it can again be important if and when it is reached.

It may be difficult for the price to be sustained above 0.7000 as it is a key psychological number which may see profit taking.

It has become possible to draw a very steep bullish trend line supporting the price action of the last week or so. If this line is broken and the level at 0.6945 is also broken, it will be suggestive of a pull back to at least 0.6862.

There is key NZD data due later which is likely to produce a lot of volatility, so holders of long-term positions will need to keep their nerve unless there are any big shocks in the content that should prompt a reconsidering of such a position.

NZDUSD

Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the NZD, there will be a release of the RBNZ Rate Statement and Official Cash Rate at 10pm, followed later by a Press Conference at Midnight and a speech by the Governor of the RBNZ at 2:10am.

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.