NZD/USD Forex Signal – 19 March 2018

Last Thursday’s signals were not triggered, as there was no bullish price action when the supportive trend line was reached.

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 Trades

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7242 or 0.7262.

• 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 Trade

• Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7110.

• 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 last Thursday that if the price broke below the trend line shown in the price chart below, that would be another bearish sign, suggesting that a return to the psychological level and support which are confluent at about 0.7250 is on the cards. The action over recent hours seemed bearish. This approach worked out well: a short upon the strong break below the trend line would have yielded a lot of pips, and the price fell sharply to a level more than 50 pips below the 0.7250 price target which I mentioned. There are now no supportive levels left until 0.7110 so the price has the potential to fall much further, although the recent swing low in on a par with other recent major swing lows so possibly we will see the price stabilize around the 0.7250 area next instead. I have no bias today as it feels like the move has already played out and there is likely to be a period of consolidation now.

There is nothing due today concerning either the NZD or the USD.