NZD/USD Forex Signal - 29 August 2016

NZD/USD Signal Update

Last Thursday’s signals were not triggered as unfortunately the bullish turn took place a few pips below the identified support level of 0.7300.

Today’s NZD/USD Signals

Risk 0.75%

Trades may only be taken from 8am New York time until 5pm Tokyo time, over the next 24 hours.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7200 or 0.7150.

  • 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 0.7398.

  • 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

This has been an attractive pair to trade as there has been a fairly steady long-term bullish trend for several weeks. This pair is usually harder to trade than the majors and its action is certainly relatively choppier.

Friday’s strong downwards move brings the bullish trend into question or at least suggests a deep bearish pull back. However, a look at the chart below shows that we have not yet broken the recent key highest swing lows which are floored at around 0.7200, so we might be recovering already. Momentum is a little light to show the likely start of a bullish thrust.

NZDUSD

There is nothing due today concerning either the NZD or the USD.

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.