Yesterday’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 0.6883.
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 was incorrect yesterday in thinking that the price would reach the next support level at 0.6806 at least. However, I did say that I doubted that this level would be reached before the key economic data due later from New Zealand. The stronger than expected employment data caused a complete turnaround, sending the price up by more than 1%, and it is now starting to flirt with testing the next resistance level at 0.6938. The decisively bullish action has created a new flipped level of support to resistance at 0.6883.
The price may turn bearish again there in line with the medium to long-term bearish trend, but it will probably need a considerable cooling-off period so there shouldn’t be any hurry to get short. If the price does get established above 0.6938, it would be a bullish sign.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by ISM Manufacturing PMI data at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement at 7pm.