Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
Go long following a strongly bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6806.
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 Trade 1
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6938.
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
I wrote last Thursday that the price would probably have the momentum to carry it further down, and this is what happened. However, recent hours have produced a few short-term higher lows, signifying that the price may be turning. A consolidating triangle can be drawn in the chart below, with convincing trend lines as boundaries on both sides. This means it is a challenge to forecast at which side of the triangle the breakout will actually occur. As the taps on the line look more convincing on the upper side and as there is a bearish trend, I think the price is more likely to break downwards, meaning short trades off a further tap of the upper line would be more likely to be the best opportunity over the coming hours.
There is nothing due today concerning either the NZD or the USD.