NZD/USD Forex Signal - 7 March 2017

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

Today’s NZD/USD Signals

Risk 0.75%

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

 

Long Trade 1

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

  • 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 Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7043 or 0.7068.

  • 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

I had thought yesterday that the price might be bottoming out at around 0.7000, but the price continued to fall during the Asian session and in fact this pair has been the Forex pair with the most momentum in recent days. The move is due mainly to NZD weakness. At the time of writing, the price is sitting on a key support level at 0.6978 which does not look as if it is going to hold, so I will not use that level as support in my forecast today.

This pair looks bearish and still has good momentum in that direction.NZDUSD

There is nothing due today concerning the USD. Regarding the NZD, there will be a release of GDT Price Index data.

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.