Last Wednesday’s signals were not triggered, as neither of the key levels were reached during that session.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Long Trades
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7035 or 0.6986.
- 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 Trade 1
- Go short following some bearish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7117.
- 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 bearish trend line shown in the chart below is still dominant, as it has continued to hold. There has also been sustained breaks below former support, and the level at 0.7117 has flipped to become probable new resistance. This level looks especially attractive for a short trade entry because it is currently confluent with the medium-term bearish trend line. Below, the key psychological round number of 0.7000 is not far away, and this could become an important bullish turning point. Until anything happens down there, in the meantime, I maintain a bearish bias, which is helped by pessimism over New Zealand’s post-election political deadlock.
There is nothing significant due today concerning either the NZD or the USD. It is a public holiday in the U.S.A.