NZD/USD Forex Signal - 7 March 2019

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

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time Thursday until 5pm Tokyo time Friday.

Short Trades

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6789 or 0.6853.

  • Put 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 ride.

Long Trade

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6708.

  • Put 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 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.

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NZD/USD Analysis

I wrote yesterday that the picture had become somewhat more bearish as support had been invalidated but it may be that the big psychological level at 0.6750 plus the trend line currently confluent with it will hold the price up. Due to this relatively even balance, and the fact that the AUD was more bearish than the NZD at present, I wanted to avoid trading this pair yesterday.

This was probably a good call as the price has moved little over the past day but has risen slightly. The bearish channel shown in the chart below is still holding the price but has not been tested. There is a new obvious resistance level at 0.6789 and if the price can get established above this it will be a slightly bullish sign – if the price can also trade above the upper trend line for a couple of hours, then I would take a bullish bias.

There is not much of a long-term trend to work with.NZDUSDThere is nothing of high importance 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.