NZD/USD Signal Update
Yesterday’s signals produced a profitable short trade from 0.6549. It does not appear there is much more downwards movement now so it would probably be wise to take further profit.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.
Short Trade 1
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6549.
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 Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.6439 and 0.6425.
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 price reaches 0.7300 and leave the remainder of the position to run.
NZD/USD Analysis
It has been interesting to see over recent days that apart from the spike down, the NZD has been making a quiet recovery. It is reluctant to move down and over past weeks has been more or less holding its own against the USD. It may begin to become one of the stronger currencies, even if only because of its relatively high interest yield.
If the trend really does turn here, then long trades near 0.6425 start to look like excellent positions to open.
Of course it is early to talk about a trend change, and it may continue downwards along with other commodity currencies. However this is definitely not looking like the best pair to short if you want to take advantage of a possibly strengthening USD.
Alternatively, the area around 0.6550 looks like the nearest strong resistance.
There is nothing concerning the NZD due today. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.