NZD/USD Forex Signal

20 November 2017 10:43:55 AM

Yesterday’s signals produced a losing short trade following the bearish price action rejection of the resistance level at 0.6865.

Today’s NZD/USD Signals

Risk 0.75%

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

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6750.

  • 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 0.6865.

  • 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

This pair must be said to be in a long-term bearish trend now. It falls steadily with a good trend. The chart below shows a bearish situation, with the price currently looking as if it is turning bearish right now and giving a potential low-risk entry on a short trade, although it is not rejecting an obviously defined level. There is a dominant trend line only a few pips above the nearest resistance level of 0.6865, which could provide a good short entry if the price gets back up there.

If the price continues to fall, it is hard to say how much further it might go. The major psychological level at 0.6750 should be watched closely for potential support.NZDUSD

There is nothing important 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.

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