NZD/USD Signal Update
Last Tuesday’s signals were not triggered as none of the key levels were reached.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7013 or 0.6945.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7086 or 0.7117.
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
This pair is one of the most bearish of all. The chart below shows how persistent and well-organised the recent downwards movement has been, with a long-term bearish trend line containing the price. Although it is not really possible to draw a strictly accurate lower line, it has the symmetrical look and feel of a bearish channel.
However, the price is nearing the very key 0.7000 level which has been a persistently supportive area, so we are now facing a moment of truth. Expect either a great place to initiate longs or a very bearish-signalling serious break below that level.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories at 4pm.