NZD/USD Signal Today: Consolidation Below $0.6000 (Chart)

(MENAFN- Daily Forex) Today's NZD/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Tuesday.

Long Trade Idea

• Go long after a bullish price action reversal on the H1 timeframe following the next touch of $0.5828.
• Place the stop loss $100 below the local swing low.
• Adjust the stop loss to break even once the trade is $100 in profit by price.
• Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

Short Trade Ideas

• Go short after a bearish price action reversal on the H1 timeframe following the next touch of $0.5939 or $0.5978.
• Place the stop loss $100 above the local swing high.
• Adjust the stop loss to break even once the trade is $100 in profit by price.
• Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

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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/USD Analysis

Not long after today's London session got underway, the conclusion of a trade deal between the USA and China was announced. The news sent money flowing strongly into US stock markets, meaning flowing into US Dollars, sending the greenback soaring against every other currency, with the Kiwi being no exception to that.

Technically, the price has spent many days now consolidating below the big round number at $0.6000 which is centred on an area of strong resistance, after rising for some time in line with the bearish USD trend, which has now started to change.

The lower limit of the consolidation is $0.5828.

It is likely that we could see the price fall further. The outlook must be somewhat bearish at least due to the positive news for the USD, and technically, the fact that the price has continued to print clear lower resistance levels, which are pushing the price down.

Either a short trade from a rejection of a resistance level, or a speculative long trade from a firm bullish bounce at $0.5828, could be interesting trades to take today if they set up.

EURUSD Chart by TradingView

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