NZD/USD Forex Signal - 7 December 2017

Thursday, 7 December 2017 10:20

Yesterday’s signals produced a losing long trade following the bullish rejection by an inside candle at 0.6871.

Today’s NZD/USD Signals

Risk 0.50%

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

Short Trade

  • Short trade 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.

NZD/USD Analysis

The poor Australian data has dragged the price down after it initially found some support at 0.6871 as I had been expecting. The price has continued to fall and seems to have invalidated the former support level at 0.6841, leaving nothing to hold up the price from a large drop except a reasonably long-term bullish trend line, which is shown in the chart below. If this trend line breaks, it will be a very bearish sign. Yet I am wary of taking a long trade here, and I have no bias now on this Forex currency pair.NZDUSD

There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

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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