Yesterday’s signals were not triggered, as there was no bearish price action when the price reached 0.6865.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6865, or 0.6847.
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.
Move 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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.6915 or 0.6934.
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 thought yesterday that the price would be most likely to continue downwards, but I warned the data releases due later could push the price anywhere, and so it proved to be, with the price turning bullish and breaking up past resistance. The move also broke a relatively short-term consolidating triangle pattern, and has established new support levels. So, the price is moving against the long-term bearish trend, but there is no reason yet to see this as a definite, major trend reversal. Nevertheless, the action is quite bullish, and as we are close to a major zone of long-term support, long-term speculators might want to think about going long.
I have no directional bias on this currency pair. The NZD looks stronger than the AUD.
There is nothing important due today concerning the NZD or the USD. It is a public holiday in the USA today.