NZD/USD Forex Signal

|

NZDUSD: Evenly balanced but 0.6277 – 0.6250 pivotal

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

Today’s NZD/USD Signals

Risk 0.50%.

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

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6348, 0.6365, or 0.6397.
  • 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 Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6277 or 0.6255.
  • 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

NZD/USD Analysis

I was quite bullish last Thursday, seeing a bullish base below the psychological level at 0.6250. This was a good call as the price continued to rise all the way to the key resistance level at 0.6348. We now see the support at 0.6255 (confluent with the psychological level at 0.6255) as important and I think this area is likely to be today’s pivotal point. I would take a bullish bias today if we get a firm bullish bounce when 0.6255 is next touched.

There is no real trend, so reversals at key levels are likely to be all we have today.

Conversely, if the price can get established later below 0.6255, that would be a bearish sign.

nzdusd

There is nothing of high importance due today concerning the USD. Regarding the NZD, there will be a release of CPI (inflation) data at 10:45pm London time.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.