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(MENAFN – Daily Forex) Yesterday’s signals were not triggered, as there was no bullish price action at 0.6681.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trades
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6671 or 0.6720.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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 Trades
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6640 or 0.6612.
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Place the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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 I would be bullish today above the new upper trend line which currently sits at about 0.6730. The price never got above that level, and instead made quite a strongly bearish break below the formerly supportive trend line. We now have a more bearish picture, and the confluence of new resistance at 0.6671 and the broken trend line close by looks attractive for a potential short trade entry, if the price returns to that area and clearly fails to rise, and then turns bearish. I would take a bearish bias at that point.
There is nothing important due today concerning either the NZD or the USD.
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