Yesterday’s signals were not triggered as neither 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 and 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6996.
* 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.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7039.
* 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.
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 we might be seeing the start of a long-term bullish move following the strong rejection of the 0.7000 area, but instead the bullish wave peaked at a double top around 0.7039, printing a new resistance level. The price is again approaching 0.7000 so the next thing to watch for is how the price reacts when it reaches that area, as it seems very likely to do. If it gets established below 0.7000, that will be a bearish sign.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Final GDP and Unemployment Claims data at 12:30pm London time.