NZD/USD Signal Update
Yesterday’s signals produced a profitable short trade following the pin candle rejection of the identified resistance level at 0.7306, although I had warned about being very careful tasking any shorts from that level.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24 hours only.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7150 or 0.7200.
* Put 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 ride.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7306 or 0.7398.
* Put 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 ride.
NZD/USD Analysis
The price did make a strong climax push up above the resistance level identified at 0.7306 very late in the New York session, but the price fell back quickly, and although the price action was a little uncertain which may have caused many to skip this trade, it did provide some good short pips. I would be looking to close out any short trade remaining open quite soon as we start to get lower wicks showing on the hourly candles in the 0.7225 area where we might begin to find some support.
It is quite likely that the price will just chop around until the FOMC release due later after the London Close.
There is nothing due today concerning the NZD. Regarding the USD, there will be releases of Crude Oil Inventories at 3:30pm London time followed by the FOMC Meeting Minutes at 7pm.