NZD/USD Signal Update
Last Thursday’s signals were not triggered as there was no bullish price action at 0.6950.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6917 or 0.6859.
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 0.6994.
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
There is a weak, short to medium term bullish trend, supported by the trend line shown in the chart below. The fact that former support levels at 0.6950 and 0.6930 were erased by the price action over recent days are further indications as to the weakness of this trend.
Provided the new support level at 0.6916 holds I would remain cautiously bullish. The resistance close to the big round number at 0.7000 looks very strong.
Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Regarding the NZD, there will be a release of GDT Price Index data later.