NZD/USD Forex Signal

Last Thursday’s signals were not triggered as none of the key levels were reached that day.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be entered from 8am New York time Monday until 5pm Tokyo time Tuesday.

Short Trades

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6748 or 0.6774.
  • 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 run.

Long Trade

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

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NZD/USD Analysis

I wrote last Thursday that the picture now is decidedly more bearish as it had now become obvious the price was trading within a symmetrical bearish price channel, with both the upper and lower trend lines having had two touches, with the third likely to be significant. The price action had made a bearish turn from the top of that channel, and it looked likely to break down. This was a good call as the price has continued to move down since then.

The NZD is the weakest of all the major currencies, and still looks 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.

nzdusd

There 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.