Yesterday’s signals produced a trade from the bullish bounce at the supportive trend line, although it only gave the minimum 20 pips of profit.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time, during 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 the supportive trend line currently sitting at about 0.7257.
- 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 Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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
There is still no change to the technical picture from the past few days. The price is still in a bullish channel as the lower channel trend line continues to hold. I predicted a bullish bounce from the true lower channel trend line at about 0.7253, which happened yesterday. We now have a short-term consolidating triangle awaiting a breakout. A breakout in either direction should be significant, with some follow-through.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Unemployment Claims at 1:30pm, ISM Non-Manufacturing PMI at 3pm, and Crude Oil Inventories at 5pm.