Yesterday’s signals produced a long trade from the bullish candlestick which rejected the support level identified at 0.6750 to the pip during the Asian session.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time to 5pm Tokyo time, over the next 24-hour period.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6811.
Place 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.
Long Trade
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6750.
Place 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.
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 I really couldn’t be comfortable forecasting the short-term price movement here, but I did note that 0.6750 might have become good support and that seems to have been the case, with the price moving up bullishly from there now. There is a similar formation happening now with the typically highly correlated AUD/USD currency pair, but this looks more bullish, which is always a bullish sign.
In any case, it looks as if the price will move little now until the U.S. data releases due later today, which could push the price anywhere. I have no directional bias but generally I would be more comfortable taking a long trade here than a short trade.
There is nothing important 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 the ISM Non-Manufacturing PMI at 3pm. There will be a release of Crude Oil Inventories data at 4pm, and finally the FOMC Meeting Minutes at 7pm.