NZD/USD Forex Signal - 6 February 2017

NZD/USD Signal Update

Last Thursday’s signals were not triggered as none of the key levels were triggered during that session.

Today’s NZD/USD Signals

Risk 0.75%

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

 

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7295 or the bullish trend line shown in the chart below which is currently sitting at approximately 0.7270.

  • 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 run.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7359.

  • 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 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

This pair continues to look bullish, and is now back to looking more bullish than its sister pair, AUD/USD, as it has not been held by any resistance level yet – although there is a short-term bearish trend line that has capped the price in recent hours.

There is new support at about 0.7300.

The price is threatening to rise and reach new multi-year highs above 0.7484.NZDUSD

Concerning the NZD, there will be a release of Inflation Expectations data at 2am London time. There is nothing due regarding 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.