NZD/USD Forex Signal

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NZDUSD: Weakly bullish above 0.6277

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be taken between 8am New York time Thursday and 5pm Tokyo time Friday.

Short Trade Ideas

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

  • 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 Ideas

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

  • 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

The NZD has been relatively weak over recent weeks, making new long-term low prices. However, it has now recovered some strength. This pair seems to have built a bullish base below the key psychological level at 0.6250 and the line of least resistance seems to be upwards. There is also short-term bullish momentum.

I see the best opportunity which may set up over the coming days, though probably not today, as likely to be a long trade from a retracement to 0.6277 if there is a strong bullish bounce there.

If the price can get established above 0.6350, it would be a bullish sign.NZDUSDThere is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time.

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.