NZD/USD Signal Update
Yesterday’s signals were not triggered as the price fell just a little bit short of reaching the key resistance level at 0.7360.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7200 or the bullish trend line currently sitting above there at approximately 0.7270.
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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7360, 0.7384 or 0.7422.
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
I have zoomed out more than usual in the chart below, because it shows why it is right to see the potential as more to the upside than the downside. Although we reached a new high yesterday, there was a pull back, but the price has bounced back and the key supportive trend line is still holding. There is a long-term bullish trend and if the FOMC release shows a more dovish than expected monetary policy for the USD, this pair will probably see a strong and immediate rise.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by all the FOMC releases at 7pm and the usual press conference. Concerning the NZD, there will be a release of the Official Cash Rate and RBNZ Rate Statement at 10pm.