NZDUSD analysis: Bottom holding above 0.6450
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6528 or 0.6558.
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 ride.
Long Trade
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6443.
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 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 as we had seen a move up since the market opened in Asia, so the price did not seem ready to fall again, unlike the AUD, which was still more bearish than the NZD.
I was ready to take a bearish bias if we got a further bullish retracement to 0.6528 and a firm bearish rejection of that level later, but I preferred to be short of AUD/USD than this currency pair.
This was a good call as the action has firmed up above 0.6450 so I was correct not to be unconditionally bearish.
I think the best approach here is to wait and see for the time being. A failure to break above 0.6528 could see a resumption of the bearish trend.
There is nothing important due today concerning either the NZD or the USD.