NZD/USD Forex Signal - 10 October 2017

Yesterday’s signals were not triggered, as none of the key levels were yet reached.

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be entered from 8am New York time until 5pm Tokyo time, during 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 0.7035 or 0.6986.

  • 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 some bearish price action on the H1 time frame immediately upon the next touch of 0.7117.

  • 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 has been no change to the technical picture over the past 24 hours. The bearish trend line shown in the chart below is still dominant, as it has continued to hold. There has also been sustained breaks below former support, and the level at 0.7117 has flipped to become probable new resistance. This level looks especially attractive for a short trade entry because it is currently confluent with one of the medium-term bearish trend line. Below, the key psychological round number of 0.7000 is not far away, and this could become an important bullish turning point. Until anything happens down there, in the meantime, I maintain a bearish bias, which is helped by pessimism over New Zealand’s post-election political deadlock. Note how the NZD is one of the weaker currencies overall right now.NZDUSD

There is nothing significant due today concerning either the NZD or the USD.

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.