Last Tuesday’s signals produced a losing short trade following the bearish pin candle rejecting the resistance level identified at 0.7087.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be entered between 8am New York time and 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.
- 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 entry into the zone between 0.7083 and 0.7117.
- Put 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
We have seen the first medium-term bullish trend breakdown, with the high at 0.7117 failing to break at the second test, and the price now beginning to sell off after pulling back to key resistance levels. However, provided that the trend lines shown in the chart below hold as support, we cannot say this trend is over. A break below either trend line could trigger a lot of long trade stops which might produce a sharp fall in the price.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Unemployment Claims at 1:30pm, ISM Manufacturing PMI at 3pm, and Crude Oil Inventories at 4pm.