Yesterday’s signals produced a short trade following the bearish turn within the resistant zone around 0.7300, but it was only good for a little more than the minimum 20 pips of profit.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7153.
- Place 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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7318 or 0.7359.
- Place 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
The NZD is again looking very bullish, in fact it has been more bullish against the USD than any other major currency. It has a lot of momentum and has clearly been printing higher lows, as well as breaking up strongly into an area of key resistance. If the price can get established above 0.7318 over the forthcoming hours, it will be a very bullish sign. Alternatively, as this level is major resistance, the advance may be halted, but be careful with trading short on a bearish turn here as it would probably take a few hours for any turn to fully develop.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, and the Chair of the Federal Reserve will be speaking at 6pm.