NZD/USD Signal Update
Yesterday’s signals were not quite triggered, although the pair has reached the forecast resistance level of 0.7500, which has been successfully resisting the rise so far.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.
Short Trade 1
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6750.
- 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.
Short Trade 2
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6800.
- 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.
Short Trade 3
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6872.
- 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.
NZD/USD Analysis
I forecast yesterday that a break up above 0.6660 (shown by the green line in the chart below) could see a pull-back going all the way up to 0.6700 or 0.6750. This is in fact what happened, with 0.6750 now acting as resistance and checking the move up.
The non-event of yesterday’s FOMC report may make it hard for the USD over the coming days. However the NZD has no reason to stop being weak and global markets are in crisis mode, so the downwards trend here is more likely than not to resume before too much longer.
There is nothing due today regarding the NZD. At 1:30pm London time there will be a release of U.S. Unemployment Claims data.