NZD/USD Forex Signal

Last Monday’s signals were not triggered, as there was no bearish price action at 0.6748.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.

Short Trades

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6774 or 0.6804.
  • 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 last Monday that the NZD was the weakest of all the major currencies, and still looked bearish below 0.6750. I would take a bearish bias if we got a solid bearish rejection of the 0.6750 after the bullish retracement continues to push the price up there.

This was a good call as the price soon invalidated the level and continued to push up and invalidate the bearish price channel. So, despite the fact that the price is near long-term lows, the picture looks more bullish. The resistance at 0.6774 looks pivotal and likely to be tested later today. I would take a bearish bias if we got a strong bearish rejection there later today.

nzdusd

There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of CPI data at 12:30pm London time, and FOMC Meeting Minutes at 6pm.

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.