NZD/USD Signal Update
Yesterday’s signals produced a profitable short trade following the bearish rejection by an inside candle of the resistance level identified at 0.7228.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
Long trade following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7182 or the supportive trend line currently situated at about 0.7150.
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 Trades
Short trade following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7228 or 0.7265.
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
There has been a rejection of resistance, but no meaningful change to the overall picture which is still bullish. If for any reason the USD is seen weaker after the important Federal Reserve announcements later, this pair should break up past that level at 0.7228, and reach the next level at 0.7265. Alternatively, the announcement could spike the price down as far as the bullish trend line, where it would probably look like a good buy.
There is nothing due today regarding the NZD. Concerning the USD, there will be releases of Retail Sales and PPI data at 1:30pm London time, followed later by Crude Oil Inventories at 3:30pm. Finally, we will get the FOMC Statement, Economic Projections and Federal Funds Rate at 7pm.