NZD/USD Forex Signal

23 October 2017 9:47:20 AM

Last Thursday’s signals were not triggered, as there was no bullish price action when the price reached 0.6986.

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 Trade 1

  • Go long following a strongly bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6867.

  • 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

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7035.

  • 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

I was right to be wary in my previous analysis last Thursday of taking any long trades, as the price has continued to fall due to strong negative sentiment concerning the New Zealand Dollar, and has also become established below the former key support level of 0.6986. The price is still making a series of lower lows and lower highs, so I maintain a bearish bias, but we might be due a bullish retracement soon. The action has invalidated the key levels nearby, so there are no obvious prices to provide high-probability reversals today.

This pair is quite attractive to trade as the volatility is higher here than anywhere else in the Forex market. It is probably wise to just try to trade the flow for now if you are going to trade this pair, and the flow currently remains bearish.

NZDUSD

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

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.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now