NZD/USD Signal Update
Yesterday’s signals produced a losing long trade off the bullish pin bar that formed on the hourly chart rejecting support at 0.6740.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6631.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6754.
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.
Short Trade 2
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6783.
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 was right yesterday to see 0.9840 as a resistance level, even if minor, as the price never really managed to get above it. Later in the day there was a very poor GDT Price Index release that absolutely hammered the NZD, leading to this sharp fall and an easy slice through the first support level, before eventually even breaking down below the second support level.
Now the pair is recovering with a slight upwards movement, but the market’s sentiment on NZD will have changed now to bearish, so the best opportunities will probably come now from short trades. The former support at 0.6783 is likely to have flipped to resistance, but even before that there is a zone beginning at the psychologically key level of 0.6750 which is likely to be pivotal.
There are no high-impact releases due today concerning the NZD or the USD.