NZD/USD Forex Signal – 18 April 2018
By: DailyForex.com
Yesterday’s signals were not triggered, as there was no bullish price action at 0.7334.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7370.
* Put 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 Trades
* Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7304.
* Put 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 the support at 0.7334 would probably be reached in the coming hours, and how the price reacted there should determine whether a deeper pull-back within the current long-term bullish trend was likely or not. The level was reached and broken, and the action looks quite bearish. There are two support levels not far away and the higher one, at 0.7304, is likely to be reached. I feel that the coming days will see the price falling further, all the way down to the 0.7250 area, so I take a bearish bias now looking forward. Much will depend upon the New Zealand inflation data due later.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the NZD, there will be a release of CPI data at 11:45pm.
Leave a Reply
Want to join the discussion?Feel free to contribute!