NZD/USD Signal Update
Yesterday’s signals produced a losing trade from the bullish inside candle rejecting the anticipated support level of 0.6981, which was unfortunate price action as the price did subsequently rise from this area with some momentum.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time.
Protect any open trades by 6:30pm.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6945, 0.6862 or 0.6795.
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 ride.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7080 or 0.7100.
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 ride.
NZD/USD Analysis
The decline of the past several days looks to have reversed with a sharp bullish inflection from around 0.6960.
The price will probably consolidate until the FOMC and GDP releases tonight which are likely to have a significant and unpredictable impact.
The long-term trend here is bullish, and there is a lot of blue sky above 0.7150, so a weaker USD followed by good NZ GDP data later could have good potential to the upside.
Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed later at 3:30pm by Crude Oil Inventories. At 7pm there will be the release of the Federal Funds Rate, FOMC Statement and FOMC Economic Projections, followed by the usual press conference. Concerning the NZD, there will be a release of GDP data at 11:45pm.