Yesterday’s signals were not triggered, as there was insufficiently bearish price action when the price reached the resistance level at 0.6750.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6811.
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.
Long Trade
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6750.
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.
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 would probably need to settle for a while before it could start to fall again. I thought it was probably best to step aside and wait on this pair for the next 24 hours or so. This was a good call as the resistance at 0.6750 did not hold. It might now be support but it does not look very clear. I wouldn’t pay attention to this level if it were not also a key psychological level (0.6750). It now seems as if the bullish move is slowing down, and with the market tailing off due to the U.S. holiday, there probably won’t be much movement for several hours, and its difficult to forecast. I have no directional bias on this pair today.
There is nothing important due today concerning either the NZD or the USD. It is a public holiday in the United States.