NZD/USD Forex Signal - 6 March 2018

By: DailyForex

Yesterday’s signals were not triggered, as none of the key levels were reached during the specified time.

Today’s NZD/USD Signals

Risk 0.75%

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

Short Trades

  • Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7246, 0.7275 or 0.7299.
  • 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 Trade

  • Long entry following some bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7110.
  • 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

Yesterday I kept my bearish bias. There has been no change to the technical situation since then, but the price has moved up slowly, and is now knocking at the resistance level identified at 0.7246 which has become confluent with the long-term bearish trend line sitting just above it at 0.7250, which is also a psychological level. There are no signs of this yet, but the price has a good chance to turn around here and become bearish. If it does break up instead, bears will have another chance at 0.7275.

NZD/USD

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.