NZD/USD Forex Signal - 9 August 2018
Last Tuesday’s signals produced a wonderfully profitable short trade entry from the bearish pin candlestick which rejected the resistance level identified at 0.6763. It can be left to run safely until the price flattens out on the hourly chart.
Today’s NZD/USD Signals
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6689.
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 entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6675.
Put 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.
I wrote last Tuesday that it could be argued that the picture still looked bearish, or at least that a short trade from a reversal at the nearest resistance level would be attractive, but I had no directional bias until that happens. Luckily the reversal at the nearest resistance was enough and was followed a few hours ago by a surprisingly dovish rate from the RBNZ which pushed the price down sharply to new multi-month low prices. The chart is still showing short-term bearish momentum, so the decline looks set to continue now to at least 0.6675, so I take a bearish bias over the next few hours above that level.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.
- Currency Pairs