NZD/USD Daily Forecast 21st December 2017
Yesterday’s signals were not triggered, as there was no bearish price action at 0.6995.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7035.
· 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.
Long Trades
· Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6925 or 0.6908.
· 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.
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 I saw the pattern as still looking bearish, but I was wrong about that. I was looking for the price to return to 0.7000 or even 0.7035, as any short trade opportunities which might arise there would start to look attractive. However, the action is more strongly bullish, with the NZD now looking stronger than the AUD, which gives me less confidence to be bearish here. We are now approaching what is likely to be the key event of the week, the Final U.S. GDP numbers, and a short trade looks likely to work only if the number comes in better than expected. I have no directional bias today, even though there is a long-term bearish trend.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Final GDP data at 1:30pm London time.