NZD/USD Forex Signal – 26 March 2018

By: DailyForex.com

Last Thursday’s signals were not triggered, as there was no bullish price action at 0.7224.

Today’s NZD/USD Signals

Risk 0.50%

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 the bearish trend line shown in the price chart below currently sitting at about 0.7315.

· 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 0.7246 or 0.7230.

· 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 over the short-term everything was going to depend upon which side of 0.7261 the price remained on. This was correct enough, as the price continued to fall after having rejected the level very early in the day. However, later developments have created a considerably more bullish picture. We have had three bullish waves, which have invalidated resistance and created new higher support. The price is currently trading bullishly at its highs, yet it is not far now from a reasonably long-term bearish trend line which is quite likely to halt the advance, at least temporarily, and possibly provide a short trade entry opportunity later. Until the trend line is reached and decisively rejected, I take a bullish bias.

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