Yesterday’s signals were not triggered, as there was no bearish price action at 0.7216, and the bounce off 0.7178 did not happen until the end of the Asian session.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7178 or 0.7117.
- 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 some bearish price action on the H1 time frame immediately upon the next touch of 0.7240 or 0.7344.
- 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
I wrote yesterday that a period of consolidation here was quite probable until the big RBNZ release later, which could push the price anywhere. As it happened, the consolidation simply continued. The only change to the technical picture is moving up the nearest likely resistance level by a few pips. It seems the New Zealand Dollar is holding up best against the U.S. Dollar’s advance, so this pair could be prone to rise sharply if the U.S. Dollar data due later today is significantly worse than is generally expected. I have no directional bias on this pair today.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Final GDP and Unemployment Claims data at 1:30pm London time.