NZD/USD Signal Update
Yesterday’s signals were not triggered as none of the key levels identified were ever reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7161 or 0.7119.
* 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 ride.
Short Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7241 or 0.7285.
* 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 ride.
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
There is an interesting and unusual divergence going on between the NZD, which remains weak after its central bank talked it down last week, and the AUD, which remains strong.
The previous near support has now been muddled and broken down, but we see a useful flipped level not far below at 0.7161 which may act as support again.
There is no recovery back into the previous long-term bullish trend, which suggests that we may have seen a major change in sentiment concerning the NZD.
There is new flipped support above, confluent with a quarter-number, at 0.7224.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of PPI data at 1:30pm London time followed later by the Chair of the Federal Reserve testifying before Congress at 3pm.