NZD/USD Signal Update
Yesterday’s signals gave a losing short trade off the rejection of 0.7228 before the FOMC release, although the price ended by moving very strongly in its original intended direction.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Long trade following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7073 or 0.7048.
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 trade following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7115.
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
The price was mildly bullish until shortly before the FOMC release, which produced the anticipated rate hike, but more importantly, produced a forecast of higher rates than had been expected for 2017. This sent the USD rising everywhere, and even though the NZD has been one of the stronger currencies, the move downwards in this pair was reasonable, but by no means especially large.
The support level of 0.7115 was cleanly broken and looks to have flipped to become likely resistance.
It remains to be seen whether the NZD will recover against the USD in line with its recent strength.
There is nothing due today regarding the NZD. Concerning the USD, there will be releases of CPI, Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time.