NZD/USD Forex Signal

Yesterday’s signals were not triggered, as the bullish price action happened a little way below the support level identified at 0.6569.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.

Short Trade

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6592.
  • 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

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6574.
  • 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 it seemed increasingly likely that we have put in a major bottom here last week, and although the action still looked finely balanced, the picture was definitely a little more bullish. However, I would want to see the recent highs just above 0.6610 taken out before taking any bullish bias. Alternatively, if the price could close for two consecutive hours below 0.6569, I would take a bearish bias.

This did not work out so well, as despite getting below 0.6569, the price has risen since then, with the Australian Dollar looking more bearish now than the New Zealand Dollar.

However, bulls should not get too excited, as the price remains within a medium-term bearish channel clearly marked in the price chart below. The price is near the upper edge of the channel and may provide an excellent short trade entry soon from a bearish failure to break above the resistant confluence between the upper trend line and the horizontal level at 0.6592. I would take a bearish bias if we get a strong failure here later.

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.