NZD/USD Forex Signal

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NZDUSD: Weakly bearish below 0.6390

 

Yesterday’s signals were not triggered as the bearish price action resisting the resistance level at 0.6390 was too weak to justify a trade entry. However, the level held as the high of the day almost to the pip.

Today’s NZD/USD Signals

Risk 0.50%.

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

Short Trade Ideas

⦁ Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6390, 0.6430, or 0.6475.

⦁ 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 Idea

⦁ Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6315.

⦁ 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 did not see much opportunity here and the action on longer-term charts looked messy, with no clear direction. 

This wasn’t a bad call as although the resistance at 0.6390 which I identified did have an impact, movement has been relatively negligible.

The picture is a little more bearish technically with 0.6390 continuing to hold as resistance, but there is still more action in the AUD/USD currency pair, so again, I would avoid trading this currency pair today.NZDUSDThere is nothing of high importance due today concerning either the NZD or the USD

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.