NZD/USD Forex Signal
|Last Thursday’s signals were not triggered, as there was no bullish price action at 0.6790.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered before 5pm Tokyo time Tuesday.
Short Trade
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Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6902.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 Trades
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Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6853 or 0.6833.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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.
NZD/USD Analysis
I wrote last Thursday that there was no trend, just a long term, wide-swinging range and a messy chart, so the best approach would probably be to trade reversals at price extremes such as the support at 0.6790 if there is another good bullish bounce there. I was almost correct, as there was a strong and sharp bullish reversal about 30 pips below that level: the extreme was rejected.
The picture now is more bullish as we have seen a strong rise in the price, with the U.S. Dollar currently acting as the weakest currency generally, which suggests still higher prices. However, we are currently close to a major resistance level which is also very confluent with a round number, at 0.6902. I would not want to enter a short trade there until the price had lost its bullish momentum over several hours at least.
There is nothing of high importance due today concerning either the NZD or the USD.
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