NZD/USD Forex Signal – 24 May 2018

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be taken before 5pm Tokyo time, over the next 24-hour period only.

Short Trade

— Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6943.

— 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 Trades

— Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6873 or 0.6859.

— 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.

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 I would be more bullish above 0.6943, but for the time being, I have no directional bias, as the picture has become unclear. The price has failed to reach 0.6943 over the past day, and the price chart below shows that we can begin to draw a consolidating triangle which is narrowing the price range down. I would not look to trade either of the triangle’s trend lines but would instead focus at reversals of the nearest support and resistance levels. I would be more comfortable entering a short trade due to the long-term bearish trend in this currency pair, but I have no directional bias at present.

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

This article provided by NewsEdge.