NZD/USD Forex Signal - 17 May 2017

Yesterday’s signals were not triggered as neither of the key levels were reached during that session.

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6867 or 0.6906.
  • Put 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 0.6946.
  • Put 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

There is less volatility here than in most other pairs, suggesting there are better opportunities elsewhere, in other pairs where there is plenty of movement. The support close by has held, although the price is still established within a wide bearish channel. The support level at 0.6867 looks strong, and might not produce a very large move but could probably be scalped long successfully if it is reached again later. A spike up to the trend line and resistance area just below 0.6950 could produce an excellent short trade.
NZDUSD

There is nothing scheduled today concerning the NZD. Regarding 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.