NZD/USD Signal Update
Yesterday’s signals provided a losing long trade.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6557.
* 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 entry into the zone between 0.6747 and 0.6770.
* 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 had thought the support could kick in anywhere within the zone from 0.6590 to 0.6557. However it was the lower level of that band that provided the real support and could do so again.
The problem with this pair is that the price is within a technically difficult position: still below the now-broken supportive trend line, and 0.6609 which looks to have formed as new resistance.
This pair may be better avoided, but could be played by buying a nice break up past 0.6609 with the stop below the recent lows around 0.6557. Then if the FOMC is overly dovish the position might survive and go into profitably long territory quite quickly.I believe this pair is better avoided because it has chopped around within the same area for several months now.
Regarding the USD, there will be releases of PPI and Building Permits data at 1:30pm London time, followed later by the FOMC Meeting Minutes release at 7pm. Concerning the NZD, there will be a releases of PPI Input data at 9:45pm.