Today’s free forex signals service provides a trade on the NZD/USD pair.
The NZD/USD pair rebounded but the leg higher could be over anytime if the Dollar Index starts increasing again. The price challenges a dynamic resistance, so a false breakout, being rejected, NZD/USD could turn to the downside.
In the short term, we need confirmation before deciding to go short. Technically, the price action could invalidate a potential leg lower, so we’ll have to wait for a strong signal.
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US ISM Services PMI
The fundamentals could drive the pair later today, that’s why you should be careful. The US ISM Manufacturing PMI will be released later and is expected to drop from 61.7 points to 59.9. A deeper drop could be bad for the USD, while better than expected data could boost the greenback.
In addition, the Final Services PMI and the Trade Balance indicators will be released as well. On the other hand, the New Zealand ANZ Commodity Prices registered a 1.5% growth versus a 1.6% drop in the previous reporting period, while the NZIER Business Confidence dropped to -11 points.
The NZD/USD pair retests the descending pitchfork’s inside sliding line (SL). Stabilizing below it may signal a new downside movement.
A new lower low could activate an important downside movement. The bearish scenario could be invalidated if the pair closes and consolidates above the SL, if it makes a new higher high.
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Free forex signals – Sell NZD/USD at 0.6922
Free forex signals entry price and take profit
Instrument: NZD/USD
Order Type: SELL STOP
Entry price: 0.6922
Stop Loss: 0.7003
TP1: 0.6794
My Risk: 1%
Risk / Reward Ratio: 1:1.59
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