NZD/USD Signal Update
Yesterday’s signals produced a losing long trade following the bullish bounce off the anticipated support at 0.6762.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6714 or 0.6625.
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 0.6791, 0.6807 or 0.6862.
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
The NZD has become one of the weakest currencies over the past week or so. During the past day it broke down below three support levels, all of which look to have been flipped to become resistances. In particular, the price seems to be rejecting 0.6762 at the time of writing.
Needless to say, it will be risky to enter trades right ahead of the RBNZ report due later as New Zealand opens for business.
There are no high-impact events due today concerning the USD. Regarding the NZD, there will be a release of the RBNZ Financial Stability Report at 10pm London time, followed by the usual press conference.