NZD/USD Signal Update
Yesterday’s signals gave a profitable long trade following a bullish rejection of the support level identified at 0.6825. Profits should have been taken by now.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time today.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6904.
* Put 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.
* 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 Trades
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7025.
* Put 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.
* 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
This pair moved up very strongly in the aftermath of releases from both Central Banks which had the result of boosting the NZD and squashing the USD, so holders of long positions benefited from a perfect storm. In recent hours it looks as if the resistance level at 0.6980 is holding the price and that might continue, but I would not look for a short trade later off that level.
There was resistance just above 0.6900 which now looks to have flipped to support, so if the price gets back down there, it would be a logical place to look for a new long trade.
Regarding the USD, there will be releases of Advance GDP and Unemployment Claims data at 1:30pm London time. There is nothing due concerning the NZD.