NZD/USD Forex Signal

16 February 2017 10:17:50 AM

By: DailyForex.com

Yesterday’s signals gave us a short trade following the price action’s (weak) bearish rejection within the resistant zone identified between 0.7224 and 0.7241. This trade is still open and in play, but it looks like a poor performer so I suggest closing it for break even or a small loss if possible.

Today’s NZD/USD Signals

Risk 0.75%

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

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7212 or 0.7119.

  • 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 ride.

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7285.

  • 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 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

This pair finally showed a bullish recovery, in line with the strong weakness of the U.S. Dollar across the board yesterday during the New York session. The price is being sold within the resistance zone from 0.7224 to 0.7241 and is struggling to move decisively in either direction. The price really needs to break up above 0.7285 before the long-term bullish trend can truly get going again.

NZDUSD

Regarding the USD, there will be releases of Building Permits, the Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm London time. Concerning the NZD, there will be a release of Retail Sales data at 9:45pm.

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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