NZD/USD Forex Signal - 17 August 2017

17 August 2017 11:16:35 AM

Yesterday’s signals were not triggered as there was no bearish price action at 0.7275.

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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7275 or 0.7253.
  • 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

  • Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7391.
  • 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

Yesterday’s FOMC release made a substantial impact upon this pair, driving it up strongly through resistance levels and a key bearish trend line, and flipping 0.7275 from likely resistance to probable support. This is in line with the long-term bullish trend, so there is a good chance now the price may eventually continue to move higher. At the time of writing, the support level of 0.7919 looks doubtful. As 0.7275 is now confluent with the broken bearish trend lines, it is likely to act as strong support if it is reached soon.

NZDUSD

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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