Yesterday’s signals were not triggered, as there were insufficiently clear bearish price actions at either of the key resistance levels.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time to 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 0.6903 or 0.6853.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7035.
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 yesterday that if the price can get established above 0.6915 that would be a bullish sign; above 0.6934, a very bullish sign. It now looks as if there is new support just above 0.6900 and that the price is in fact weakly established above 0.6915, so it is worth taking a slightly bullish bias. The NZD is now looking stronger than the AUD.
I have no longer-term directional bias on this currency pair.
Concerning the NZD, the RBNZ will be releasing a Financial Stability Report at 8pm London time. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm, while the new designated Chair of the Federal Reserve will be testifying before Congress at the same time. The U.S. Treasury Secretary will be giving a minor presentation at 8:45pm.