NZD/USD Forex Signal | DailyForex


Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6635.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.

Short Trade

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6720.

  • 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 run.

Long Trades

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6635, 0.6622, 0.6600.

  • Put the stop loss 1 pip below the local swing low.

  • 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 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.

NZD/USD Analysis

I wrote yesterday that the technical picture was looking slightly more bullish, as there was no obvious resistance until 0.6721. I thought that the pivotal level would remain at 0.6635, and if we got a bullish bounce there I would be comfortable taking a bullish bias at that point. I was at least correct about 0.6635 being the pivotal level, and it has continued to hold so far. There are several support levels relatively close below, so it may now be hard for the price to fall much further. Much will depend upon the U.S GDP due later today. I think the line of least resistance is still upwards, so I think a period of consolidation close to 0.6635 is the most likely scenario if there are no major surprises with the forthcoming data releases.

NZDUSD

Regarding the USD, there will be releases of Core Durable Goods Orders and Final GDP data at 1:30pm London time. There is nothing due today concerning the NZD.

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