NZD/USD Forex Signal

Yesterday’s signals were not triggered as neither of the key levels were ever reached.

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trade

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6888.

  • Place 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 Trades

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6765.

  • Place 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 wrote yesterday that as long as the area around 0.6837 held, it would make sense not to have a bearish bias on this pair, as there were signs of the bullish USD trend ending and the NZD and AUD remaining well-positioned to rise against the USD. This area did not hold, and although the price has risen again after falling, it was a good call that kept us out of a situation that was less bullish than it needed to be. The situation now suggests consolidation and unpredictability as the price is far from any key levels, and the action suggests a double top may be forming close to 0.6888. I have no directional bias today.

NZDUSD

There is nothing important 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.