By: DailyForex
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7374.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7244.
- 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
Last Thursday I took a bullish bias. While the first support level did not hold, the second at 0.7244 held well, giving the kind of profitable long trade entry I was looking for, but unfortunately not within the specified time. There are still reasons to be broadly bullish, but the price might now be making another major swing high in the 0.7300 area, so it might be a good idea to book and profits and wait for another pullback. There may be support at about 0.7280 which has acted as a minor battleground between bulls and bears. Above that level, I maintain a bullish bias.
There is nothing due today concerning either the NZD or the USD.