Yesterday’s signals produced a losing short trade following the bearish inside hourly candle rejecting the resistance level identified at 0.7039, which did not quite reach the minimum 20 pips of profit.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6986.
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 run.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7087.
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 run.
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
This pair made an obvious and clean bearish turn off the resistance level I identified yesterday at 0.7039. However, the price then turned around and took out the resistance level, killing the trade before falling again. This suggests the price will continue to drift upwards, despite the long-term bearish trend.
There will probably be better opportunities elsewhere over the short-term.
Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Regarding the NZD, there will be a release of CPI data later at 11:45pm.