NZD/USD Signal Update
Yesterday’s signals produced a nicely profitable long trade following the bullish pin candlestick rejecting the support level identified at 0.7295.
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 0.7292 or the bullish trend line shown in the chart below which is currently sitting at approximately 0.7286.
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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7359.
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
The key support and resistance levels I identified yesterday have worked well as price guides.
Despite the sharp drop in price over recent hours, key support levels and the supportive bullish trend line continue to hold. We are now close to that trend line and it might give a good opportunity to go long soon.
This pair looks like remaining key in any further USD weakness.
Concerning the NZD, there will be a release of GDT Price Index data. There is nothing due regarding the USD.