NZD/USD Forex Signal - 12 April 2017

Last Monday’s signals were not triggered as there was no bearish price action when the price reached 0.6947.

Today’s NZD/USD Signals

Risk 0.75%
Trades may only be taken 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 0.6859.
  • 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

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6960.
  • 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 is in a very similar position to its sister pair AUD/USD, although arguably the outlook is more bearish as it is in a longer-term bearish trend. Although the price of this pair has not moved much over recent hours, and the speed of the downwards movement is slowing down, the picture is still dominated by the bearish trend line shown in the chart below. Although the nearest resistance level was recently broken, it is not very significant, and 0.6960 now looks like the nearest key level above the current price.

NZD/USD Signal

There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

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.