NZD/USD Forex Signal - 31 July 2017
Last Thursday’s signals were not triggered as there was insufficiently bullish price action when the price reached 0.7485.
Today’s NZD/USD Signals
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7460 or 0.7391.
- 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.
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.
There is a strong long-term upwards trend, but a clear lower swing high has formed, with a new short-term bearish trend line above connecting the highs. This suggests that the price is quite likely to require a deeper bearish retracement before it will advance again. The level at 0.7460 looks like a great candidate to produce a strong bullish turn back into the direction of the long-term trend. It could also happen a few pips before that level is reached without any big surprises. This pair typically is not a great respecter of such exact levels, but tends instead to respect price areas. The turn may even have happened already, off 0.7480 which acted as support for several hours last Thursday.
There is nothing due today concerning the NZD or the USD.
- Currency Pairs