NZD/USD Forex Signal

Yesterday’s signals produced a profitable short trade from the resistance level at 0.6569.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

Short Trades

Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6569 or 0.6579.
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 ride.

Long Trade

Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6497.
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 ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

NZD/USD Analysis

I wrote yesterday that if the price did test the resistance levels above and fail, turning bearish, I would be very interested in taking a bearish bias at that time. This was a great call as the price failed twice at the resistance level of 0.6569 yesterday, giving a nice opportunity for a profitable short trade. However, it is worth noting that the U.S. Dollar was generally strong yesterday, and the New Zealand Dollar along with the Australian Dollar was one of the very few currencies which advanced against the U.S. Dollar. Despite that fact, the short-term price action is now relatively bearish, so a further fall today would not be a surprise. There could be minor support at about 0.6522 where there is a recent bullish inflection point. Overall, I have no directional bias today although I think a fall is more likely than advance, because I think the opportunity here has already passed.