NZD/USD Forex Signal - 17 April 2018

By: DailyForex.com

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

 

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 Trade

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7370.

* 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 entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7334 or 0.7304.

* 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 thought yesterday that the support at 0.7343 would be broken. It was, but the price then rallied, before printing new, lower resistance at 0.7370. This is a bearish sign, however we can adjust the support technically to just a few pips lower that it was before, to 0.7334. I think this level will be reached in the coming hours, and how the price reacts there should determine whether a deeper pull-back within the current long-term bullish trend is likely or not. I doubt there will be a strong change in sentiment today on the U.S. Dollar, so I remain bullish above 0.7334.

nzdusd

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