NZD/USD Forex Signal - 29 November 2017

Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6903 to trigger a long trade entry.

Today’s NZD/USD Signals

Risk 0.75%

Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

Long Trade

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6853.

  • 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

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

  • 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

I wrote yesterday that it was worth taking a slightly bullish bias, and noted that the NZD is now looking stronger than the AUD. This turned out to be a good approach to this currency pair, as it continued to rise while AUD/USD sank. Although the former support level just above 0.6900 did not hold, there is clearly a higher, steeper trend line which has succeeded in keeping the price rising.

I have no longer-term directional bias on this currency pair, but I remain bullish over the short term, and note that the price has recently turned bullish at long time lows, meaning that we may now have made a long-term bottom.

NZDUSD

Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, and later at 3pm the Chair of the Federal Reserve will be testifying before Congress. There will be a release of Crude Oil Inventories at 3:30pm. Concerning the NZD, there will be a release of ANZ Business Confidence data at Midnight.

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.