Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.6853 and 0.6847.
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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6915 or 0.6934.
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 we may be seeing the start of a major bullish reversal, and noted that the NZD seemed stronger than the AUD, but I didn’t call it one way or the other. The picture now looks much more bullish and we might have seen a long-term bottom. The area centred on 0.6850 looks like a very strong zone of support, and we have a new, steeper bullish trend line holding up the price and open to a third touch. It looks like the price will continue its rise in the short-term to test 0.6915, which looks like strong resistance and so might produce a good short trade. If the price can get established above 0.6915 that would be a bullish sign; above 0.6934, a very bullish sign.
I have no longer-term directional bias on this currency pair.
There is nothing important due today concerning either the NZD or the USD.