NZD/USD Forex Signal

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NZDUSD: Ranging conditions prevail

Yesterday’s signals were not triggered as there was no suitable price action when the support and resistance levels identified were reached.

Today’s NZD/USD Signals

Risk 0.50%.

Trades must be entered from 8am New York time Thursday to 5pm Tokyo time Friday only.

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 0.6315 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.

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NZD/USD Analysis

I wrote yesterday that I would take a bearish bias later if we had gotten two consecutive hourly closes below 0.6250. Luckily this was just barely avoided, but I was correct to see this price as pivotal as there was a strong rise from there, concurrent with AUD/USD, as the New York session got underway. However, the AUD/USD currency pair looks generally more bullish than this one, so while I can see AUD/USD continuing to rise significantly, I suspect this pair is likely to keep on ranging. Therefore, I see the best potential trade set-up which might occur today as a short trade from any of the resistance levels shown in the price chart, especially 0.6348 as it is confluent with the half number at 0.6350.

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There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of Philly Fed Manufacturing Index data at 1:30pm London time and Crude Oil Inventories at 4pm.

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.