NZD/USD Forex Signal - 18 April 2017

By: DailyForex

Last Thursday’s signals were not triggered as there was insufficiently bullish price action when the price initially hit 0.6986, although the level did hold and it could have provided a profitable long trade later.

Today’s NZD/USD Signals

Risk 0.50%

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

Long Trade 1

Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.6986.
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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7039.
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 recent bullishness has held up, with the level at 0.6986 continuing to hold as key support. The pair has broken up out of a bearish channel. There is a long-term bearish trend, but there is also a reasonably long-term supportive trend line below which is successfully holding up the price. It seems that the best judge of near-term movement will be whether the resistance level at 0.7039 holds when it is next tested. This might well happen soon.

NZDUSD

Concerning the USD, there will be a release of Building Permits data at 1:30pm London time. Regarding the NZD, there will be a release of GDT Price Index data later during the New York session.

 

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.