NZD/USD Forex Signal – 20 March 2018

Yesterday’s signals were not triggered, as there was no bearish price action at 0.7242.

Today’s NZD/USD Signals

Risk 0.50%

Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.

Short Trades

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7242 or 0.7261.

• Place 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 run.

Long Trade

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

• Place 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 run.

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 had no bias yesterday as it felt like the move had already played out and there was likely to be a period of consolidation now. As it happened, the price rose strongly before falling equally strongly, making its high just a pip or two below a key resistance level. This means we are back to where we began, with both resistance levels still relevant and successfully holding the price down. This failure to rise makes me more bearish, and there is still bearish momentum here as the USD is firm while the NZD (and AUD) are very weak. Additionally, there is a lot of room for the price to fall further, as I noted yesterday, with no key support levels until 0.7110. It is also notable that the price failed to rise above the psychologically important 0.7250 area. All these reasons make me bearish, therefore I take a bearish bias today.

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