NZD/USD Signal Update
Yesterday’s signals might have given a nice and profitable short trade following the rejection of the identified resistance at 0.6900, although there was an hourly close a few pips above it.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken from 8am New York time until 5pm Tokyo time today.
Protect any open trades at 6:30pm.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6825, 0.6762 or 0.6715.
Place 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.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6903 or the trend line currently sitting at around 0.6945, or 0.6955 or 0.6980 or 0.7025.
Place 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.
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
This pair has followed its sister pair downwards, after the resistance at the round number of 0.6900 was too strong for the price to break. The support at 0.6825 might be quite strong, so it should hold before the FOMC release due later.
There is big news due for both sides of this pair so there could be some wild swings accompanied by a lot of volatility.
Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time, followed later by the FOMC Statement and Federal Funds Rate at 7pm. Concerning the NZD, the Reserve Bank of New Zealand will be releasing its Official Cash Rate and Rate Statement at 10pm.