NZD/USD Forex Signal - 20 March 2017

20 March 2017 10:54:00 AM

By: DailyForex.com

Last Thursday’s signals produced a losing long trade following the first bullish pin candle rejecting the identified support level at 0.6975. However, the level worked well as support and there was a subsequent opportunity to enter successfully for greater profit than the initial loss.

Today’s NZD/USD Signals

Risk 0.75%

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

 

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7010.

  • 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 entry into the zone between 0.7068.

  • 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

The long-term downwards trend has run out of momentum and the pair is rising again, being bought most recently at or very close to the psychologically important and very large round number at 0.7000. However, the resistance at 0.7068 looks relatively strong so the price is quite likely to simply consolidate around the 0.7050 area for the time being.NZDUSD

There is nothing due today regarding either the NZD or the USD.

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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