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 may only be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period.
Protect all open trades by 5:30pm London time.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6859.
* 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
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6949.
* 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 has been no change since yesterday. Key levels continue to hold and the pair is in a long-term downwards trend, although not too far away from making a long-term possible double bottom at around 0.6800. The resistance level just above the current price at 0.6949 might provide a short-term short entry before the FOMC releases due later.
Concerning the USD, there will a release of CPI and Retail Sales data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm and the FOMC Statement, Economic Projections and Federal Funds Rate at 6pm, and then the usual press conference half an hour later. Regarding the NZD, there will be a release of GDP data at 9:45פm.