Yesterday’s signals were not triggered as there was insufficiently bullish price action within the zone of anticipated support between 0.7210 and 0.7194.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, over 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 0.7117.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7275, or the bearish trend line currently sitting at 0.7250.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 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
The resistance zone around 0.7200 was supposed to have flipped to become support, but the price came back down through that zone with relative ease, fortunately not producing any clear triggers for a long trade entry. There is now no obvious support before 0.7117, and the price remains dominated by a long-term bearish trend line which is currently confluent with the psychological level at 0.7250. Therefore, I expect the best possible trades over the near term which might set up would be short trades from bearish reversals at 0.7250 or 0.7275.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories at 3pm.