NZD/USD Forex Signal – 28 March 2018

Yesterday’s signals were not triggered, as none of the key levels were reached within the specified time window.

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be taken from 8am New York time to 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 highest bearish trend line shown in the price chart below currently sitting at about 0.7306.

• 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, 0.7230, or 0.7202.

• 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 although I had no directional bias, it looked as if the price would continue to fall further, but where it might find was just a guess. I was correct as the price did continue to fall, and it now seems to be finding support at the level confluent with the psychological number at 0.7250 (see the price chart below). This level loos attractive, as do the two levels below it. Although the medium-term picture is bearish, as evidenced by the dominant descending trend lines, I think there will be good opportunities to go long either from the current area, or at lower support levels, with tight stops and healthy take profit targets when the U.S. Dollar starts falling again, as it probably will soon enough.

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm.