NZD/USD Forex Signal - 15 December 2016

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.NZDUSD

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.

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.