Yesterday’s signals produced a nice long trade following the bullish pin candle rejecting the support level identified at 0.6996 towards the end of the Asian session. If the price does not make a new high before 2pm London time, it will probably be wise to take profit on this trade.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6996.
* 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 0.7087.
* 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
I wrote yesterday that best opportunity that might arise here would probably be if the price falls quickly to the support level at 0.6996 and begins a strong bullish reversal. This is exactly what happened and the price action there is perfect. This could be the start of a long bullish move, which might take a while to truly get going with good momentum. Alternatively, if the move fails and the price gets well established below 0.7000, that would be a bearish indication.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Crude Oil Inventories data at 2:30pm London time.