NZD/USD Signal Update
Yesterday’s signals were not triggered as the bullish price action took place slightly below 0.7040.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time to 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 0.7048, 0.7034 or 0.7000.
* 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 ride.
Short Trades
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7086 or 0.7144.
* 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 ride.
NZD/USD Analysis
We see a continuation of bullishness but unlike the AUD/USD it does not look very convincing or at least, it looks more doubtful, as we have a triple top / Quasimodo style looking bearish off 0.7086 and the area just below it. However, it is also true that we have a lot of support between 0.7048 and 0.7030 which may also hold.
It will take the FOMC release later to move the price beyond either side of these structures. AUD/USD would probably be better for a similar long USD trade anyway.
There is nothing due today regarding the NZD. Concerning the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims data at 1:30pm London time, followed later by Crude Oil Inventories at 3:30pm and FOMC Meeting Minutes at 7pm.