NZD/USD Forex Signal - 16 April 2018

By: DailyForex.com

Last Thursday’s signals were not triggered, as none of the key levels were reached during the specified period.

 

Today’s NZD/USD Signals

Risk 0.75%.

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

 

Short Trade

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7460.

* 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 Trade

* Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7304.

* 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 strongly bullish last Thursday, and the price continued to rise over the next 24 hours, so I was correct over the short-term. However, the price has pulled back now, and looks as if it is going to fall further over the short-term, breaching the nearest support at 0.7343. If this level holds, the picture will become more bullish, especially above 0.7363. I see the best potential set-up as a fall to 0.7304 followed by a bullish reversal there. The long-term trend is bullish.

NZDUSD

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of 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.