NZD/USD Forex Signal - 7 June 2017

Yesterday’s signals were not triggered as there was no bearish price action at 0.7187.

Today’s NZD/USD Signals

Risk 0.50%

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

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7153 or 0.7117.
  • Place 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 0.7241.
  • Place 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 remains in a very reliable short to medium term bullish trend. In fact, the trend is strengthening, and the break above the upper trend line of the previous channel is another strongly bullish sign. 

There are no strong reasons to not be bullish, although the very steep angle of the new bullish channel probably will not be sustainable for long.

There is no long-term trend in this pair.

NZDUSD

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories 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.