NZD/USD Signal Update
Last Tuesday’s signals were not triggered and expired.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be made between 8am and 5pm New York time only, or after 8am Tokyo time later.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.6250 and 0.6195.
Put the stop loss 1 pip below the local swing low.
Move 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.
Short Trade 1
Short entry following bearish price action on the H1 time frame immediately upon the next touch of the broken supportive trend line currently sitting at around 0.6350.
Put 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
NZD/USD Analysis
I foresaw a supportive double bottom at 0.6250 and so far this seems to be what is playing out. The price has moved up and is now testing the round number at 0.6300. The key test however is likely to be the broken trend line at around 0.6350. This could be a great area at which to go short if there is a bearish reversal there.
The area beginning at 0.6250 might be supportive if we reach it today but it will be more likely to be really good support if we do not touch it for at least a couple more days.
This still looks like the best pair to use to trade USD strength.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Core Durable Goods Orders and Unemployment Claims at 1:30pm London time. The Chair of the Federal Reserve will be speaking at 10pm.