NZD/USD Signal Update
Yesterday’s signals were not triggered as there was insufficiently bullish price action when the price reached 0.7079.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7013.
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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7144.
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
This pair has been the second biggest mover in the direction of a bullish USD since the Asian session started last night, and at the time of writing, the price is breaking down below support and heading for the psychologically very significant 0.7000 area. These are bearish signs although there is no obvious news to support it. The longer-term picture is starting to look more clearly bearish and this might be connected to problems Chinese manufacturing may face from a Trump presidency, which drags down the AUD, which in turn has an impact upon the NZD.
Concerning the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories later at 3:30pm. Regarding the NZD, there will be a release of PPI Input data at 9:45pm.