Last Thursday’s signals were not triggered, as there was no bearish price action when the anticipated resistance level at 0.6671 was reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time 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 0.6659.
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 Trades
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6622 or 0.6600.
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 last Thursday that this pair still looked more bullish than ever and seemed to have a more strongly directional bias than any other important currency pair, so I maintained a bullish bias until 0.6672 and possibly even beyond that, if the resistance level there is broken easily later. This turned out to be a good call as the price continued to rise quite strongly until just a shade below 0.6700. The price has now made a reasonably deep retracement but seems to have found solid support at 0.6635. If the price can rise from here and get established above 0.6659, I would take a short-term bullish bias.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Concerning the NZD, there will be a release of ANZ Business Confidence data at 2am.