NZD/USD Signal Update

Yesterday’s signals were not triggered as there was insufficiently bearish price action at 0.7266.

Today’s NZD/USD Signals

Risk 0.75%

Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24 hours only.

Long Trades

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7200 or 0.7150.

* Place 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 run.

Short Trades

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7290.

* Place 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 run.

NZD/USD Analysis

I wrote yesterday that that the potential for an upwards resumption is still there and that the support at 0.7200 looks to be strong. This seems to be coming true but of course the move is fairly restrained ahead of the key U.S. economic data due later today and especially tomorrow (Friday) which will be the crucial factor determining the next major move in the Forex market.

Above 0.7290, this pair starts to look nicely bullish again, and should not be written off by bulls until 0.7200 decisively breaks down.

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by ISM Manufacturing PMI at 3pm.