NZDUSD analysis: Bullish running out of steam at 0.6700?
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 taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trades
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6700, 0.6730, or 0.6747.
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 Trades
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6605 or 0.6590.
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 the NZD was showing good relative strength, I would like to take a cautiously bullish bias here, but the big round number at 0.6700 which was confluent with a long-term bearish inflection point would probably be too much to break right now.
This was good enough to stay out of trouble. The price has continued to inch up but still has not reached the 0.6700 level which will probably be the moment of truth. We are also close to long-term highs, so a major reversal on rapidly increasing volatility would be likely to signal a substantial downwards movement. Meanwhile, the commodity currencies are generally strong, with the NZD and CAD stronger than the AUD, which is a bullish sign.
Again, I would take a cautious bullish bias today up to 0.6730 if the price can close above 0.6700 for two hours consecutively later.
There is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of Final GDP data at 1:30pm London time.