NZD/USD Forex Signal - 5 December 2017
Yesterday’s signals produced an excellent long trade entry from the bullish inside/engulfing candle formation rejecting the support level identified at 0.6841.
Today’s NZD/USD Signals
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6871.
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.
I was correct in seeing a short-term rise in price yesterday as likely, but wrong to see the best opportunities as probably coming in other currency pairs, as the long trade from the support level at 0.6941 gave a fantastic and very profitable maximum reward to risk ratio. The price has gone on to print a new, higher flipped support level at 0.6871, which is a further bullish sign. The only obstacle to a strong rise in the price is the bearish trend line currently sitting just above 0.6900 and shown in the chart below. If that is broken, we could see a further bullish move up to the key round number at 0.7000.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.
- Currency Pairs