NZD/USD Signal Update
Yesterday’s signals were not triggered as there was no sufficiently bearish price action at the identified resistance level of 0.7200.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7141.
* 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 run.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7300.
* 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 run.
NZD/USD Analysis
I wrote yesterday that “A sustained break above that level (0.7200) would be a very bullish sign and it currently looks as if it is going to happen during today’s session.” This is exactly what happened and consequently it is possible to be more bullish now on this pair. I would not be quite ready to use 0.7200 as support yet however so it might be preferable to watch and wait at least for a little while.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.