Yesterday’s signals produced a short trade following the bearish pin bar rejection of the resistance level at 0.6945, but it looks like it would be an excellent idea to close it right away.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6867 or 0.6906.
- Place 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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6946 or 0.6986.
- Place 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
The top of the wide bearish channel has now been broken and invalidated. In its place, we have the horizontal resistance level at 0.6946 which is holding, but the price is supported by a clearly rising trend line. This suggests that despite the long-term bearish trend, a bullish breakout past the resistance at 0.6946 is quite likely. We also have a broken bearish trend line that is now acting as support, which strengthens the bullish case.
Of course, there are other currencies, such as the Japanese Yen and other “safe havens”, which are much firmer against a weaker USD, so there are likely to be better opportunities elsewhere.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. There is nothing due concerning the NZD.