NZD/USD Forex Signal

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NZDUSD analysis: Bullish but danger at key 0.6650 / 0.6700 zone

Yesterday’s signals produced both a profitable short trade from 0.6553 AND a profitable long trade from 0.6605!

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trades

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6700, 0.6730, or 0.6747.

  • 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 Trades

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6605 or 0.6590.

  • 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 yesterday that despite the medium-term bullish momentum, we were probably due a pullback. In any case, the major central bank input due later for the NZD rendered the price movement unpredictable.

The RBNZ held things steady and after a spike down to the support at 0.6605, the price has taken off and advanced to new highs. Interestingly, the USD has strengthened over recent hours, but is falling here against the New Zealand Dollar, which shows that the NZD has good relative strength.

I would like to take a cautiously bullish bias here, but the big round number at 0.6700 which is confluent with a long-term bearish inflection point may will probably be too much to break right now. If the price can close above 0.6700 for three hours consecutively later, I would take a bullish bias to 0.6747.Concerning the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time. Regarding the NZD, there will be a release of ANZ Business Confidence data at 2am.NZDUSD

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.