NZD/USD Forex Signal - 13 February 2018

Tuesday, 13 February 2018 10:46

Yesterday’s signals were not triggered, as there was no bearish price action at 0.7277, and the price never quite reached the support level at 0.7230.

Today’s NZD/USD Signals

Risk 0.50%

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

Short Trade

  • Short trade entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7347.

  • 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 0.7277 or 0.7235.

  • 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

I took a bearish bias yesterday, due mostly to the bearish structure of the market swings over the medium term. I was wrong, with the area close to 0.7230 acting as strong support again, sending the price higher and breaking above a key bearish trend line shown in the price chart below. It therefore makes more sense to take a bullish bias now, with the former resistance level at 0.7277 likely to be tested soon. If it becomes obvious it has begun to act as support, it should rise higher and head towards 0.7347, although the next descending trend line above could be an obstacle to such a movement.NZDUSD

There is nothing 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.

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