NZD/USD Signal Update
Yesterday’s signals produced a profitable long trade on the bullish outside candle which rejected both of the nearest resistance levels just after the FOMC release. It would be a good idea to take most of the floating profit off the table not if that has not been done already as it looks as if we have a bearish turn off 0.7120.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken from 8am New York time to 5pm Tokyo time over the next 24 hours.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7077, 0.7013 or 0.6945.
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 run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7153.
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 run.
NZD/USD Analysis
We have a nice strong move up from the support level I had identified at 0.7013 almost to the pip following the FOMC release. However, in spite of the long-term bullish trend, it looks as if the price is now falling back quite strongly as the USD begins to recover. Although we have new support at 0.7077 I would be very cautious of this level. I see the support close to 0.7000 as far more reliable and it would not surprise me if we had a trip back down to that area soon.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.