NZD/USD Forex Signal - 14 February 2018

Wednesday, 14 February 2018 10:49

By: DailyForex.com

Yesterday’s signals were not triggered, as the bullish price action took place a little way below the supportive level identified at 0.7277. However, the level was broadly accurate as a successful indicator of a supportive area.

 

Today’s NZD/USD Signals

Risk 0.50%

Trades must be entered from 8am New York time until 5pm Tokyo time, during 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 0.7347, 0.7364, or 0.7380.

· Put the stop loss 1 pip above the local swing high.

· 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 0.7273 or 0.7235.

· 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 was correct to take a bullish bias yesterday, although a few pips wrong with the support level. The price has continued its move up in a firm way, with the NZD being notably stronger than the AUD, which is always something to watch out for. Another bearish trend line seems to have been broken and is certainly invalidated now. A rise to at least 0.7346 now looks likely, we have clear stairstep support levels below as well as a trend line. However, the area from 0.7347 to 0.7380 looks likely to be strong resistance. I maintain a bullish bias.

nzdusd

There is nothing due today concerning the NZD. Regarding the USD, there will be releases of CPI and Retail Sales 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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