NZD/USD Forex Signal - 11 January 2017

11 January 2017 10:41:57 AM

By: DailyForex.com

NZD/USD Signal Update

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.

 

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6938.

  • 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 0.7048.

  • 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.

 

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

NZD/USD Analysis

It is hard to predict what will happen next with this currency pair. It is not following the usually highly positively correlated AUD/USD pair. There is a shaky, very slight supportive trend line, but the price sells off every time it reaches highs near the resistance at 0.7048. Despite the slight bullishness, I think a downwards movement would be stronger and sharper than an upwards movement, but I see no obvious end to the range. There should be better opportunities elsewhere.NZDUSD

There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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