NZD/USD Forex Signal – 29 March 2018

Yesterday’s signals were not triggered as there was insufficiently bullish price action at all the support levels which were reached.

Today’s NZD/USD Signals

Risk 0.50%

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

Short Trade

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7246.

• 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 0.7187.

• 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 wrote yesterday that the support levels nearby looked attractive and were likely to give bullish trade entries at bounces. I was wrong, in fact the price fell sharply and cut through several support levels. The technical picture has become more bearish, with steepening trend lines and a bearish confluence at around 0.7250 with a trend line, resistance and a key psychological level seeming very attractive for a short trade. However, the price has bottomed just a pip or two above the support level at 0.7187 which seems to be having an effect, so the most likely short-term move now looks like a bullish pull-back. I would be more comfortable entering a short trade than a long trade in this currency pair.

There is nothing due today concerning the USD. It is a public holiday in New Zealand.