NZD/USD Forex Signal - 24 January 2017

NZD/USD Signal Update

Yesterday’s signals were not triggered as there was insufficiently bullish price action at 0.7228.

Today’s NZD/USD Signals

Risk 0.75%

Trades must be taken from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7208.

  • 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 0.7265.

  • 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.

 

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

The bullish trend here had appeared to be slowing down compared to positively correlated currency pairs, particularly the AUD/USD pair. However recent hours have seen this pair strengthen and make a markedly new high just a fraction off my identified resistance level at 0.7265.

I see continued bullishness and new support at 0.7208 as well as 0.7178. There is also a new, higher supportive bullish trend line shown in the chart below.NZDUSD

There is nothing of high importance 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.