NZD/USD Forex Signal - 23 January 2018

Yesterday’s signals produced a short trade entry following the bearish rejection of the resistance level at 0.7344. This trade would still be open, at about break even, and is not looking as if it is going especially well as the price action is now looking bullish so it could be wise to exit.

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be taken between 8am New York time until 5pm Tokyo time, over the next 24-hours.

Short Trade

  • Short trade entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7344.

  • 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.

Long Trades

  • Long trade entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7214, or 0.7188.

  • 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.

NZD/USD Analysis

Most currencies are starting to look less bullish against the USD, but despite the rejection of the resistance level at 0.7344, the action here still looks bullish. The price has been rising over the last few hours, producing a pin candlestick and a “V” LOP, so I maintain a bullish bias. Additionally, there are still supportive trend lines holding the price up, which can be seen in the price chart below. It looks as if the momentum is strong enough to require a double top at 0.7344 before the price could be ready to turn around and start falling properly.

NZDUSD

There is nothing important due today concerning either the NZD or the USD.

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.