NZD/USD Forex Signal | DailyForex


Yesterday’s signals could have produced a losing short trade from the bearish inside candlestick which rejected the former resistance level at 0.6856, but I did warn about trading before the FOMC release which gave a huge upwards move.

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trade

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of0.7000.
  • 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

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6871.
  • 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.

Great trade opportunities are waiting. Don’t miss it!

TRADE NOW

NZD/USD Analysis

I wrote yesterday that the price was still reasonably close to making new highs as part of what is becoming a long-term bullish trend, so it made sense to be more interested generally in long and not short trades. I thought that it was probably best to stand aside until after both these releases are made, and that if the price got established after the releases above 0.6873 or even 0.6900 this would be a bullish sign, very bullish in the case of 0.6900.

This was a mostly good call as the price rose significantly both before and after the two releases. However, although the price has spent several hours now above 0.6900, it looks very much as if the price is reversing bearish to get established back below that level. If the price gets back up again today to close near the Asian session’s highs, that would be a sign that higher prices are likely going forward. We certainly have fundamentals to support that, with a dovish Federal Reserve and solid New Zealand GDP data.

NZD/USD Forex Signal

There is nothing of high importance due today concerning either the NZD or the USD.



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