By: DailyForex.com
NZD/USD Signal Update
Last Thursday’s signals were not triggered, and expired.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered only between 8am and 5pm New York times today.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6700.
* Place 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.
* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6875.
* Place 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.
* Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
NZD/USD Analysis
The strong move during the Asian session also made its presence felt here as the NZD fell and the USD rose, and we broke past the long-term supportive trend line that had held very steady for more than one month. However note that the move in this pair was less, and generally weaker in terms of its price action, that just about any pair. This suggests that the NZD is quite likely to maintain its strength and if you want to be shorting the USD, either the NZD or the JPY look to be the best candidates for that.
In the meantime, the round numbers below should act as good support. It might be that a retest of the broken trend line could give a good short, but I feel this is doubtful. However the previous major swing high at 0.6875 is another matter and could become very strong resistance at the next attempt if it fails.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.