Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend line shown in the price chart below currently sitting at about 0.7310.
· 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.
Long Trades
· Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7246 or 0.7230.
· 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.
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 the price was likely to rise to reach the bearish trend line, which is shown in the chart below. I was wrong over the short-term, as the price instead topped out around the round number of 0.7300. It is now falling as the USD strengthens everywhere and looks as if it will break below the new support level at 0.7278. It is so weak that I do not include the level in potential long trades in the section above. The technical picture is truly the same as it was yesterday. It looks as if the price will continue to fall further, but where it finds support nearby is just a guess. I have no bias on this currency pair today.
Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time. Concerning the NZD, there will be a release of ANZ Business Confidence data at Midnight.