NZD/USD Forex Signal - 6 December 2017
Yesterday’s signals produced a profitable long trade from the support level identified at 0.6871. It would probably be a good idea to take profit if that has not been done already.
Today’s NZD/USD Signals
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6871 or 0.6841.
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.
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 noting the bullish signs yesterday, but I had thought a break of the bearish trend line would probably produce a further strong move up. The trend line has broken, as shown in the chart below, but the move up seems to be stalling. Still, the line of least resistance over the medium-term does look to be bullish, and the two support levels below look strong. I have a bullish bias, and as the price makes new highs the momentum should increase in that direction.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3pm.
- Currency Pairs