Yesterday’s signals produced a losing long trade following the bullish rejection by an inside candle at 0.6871.
Today’s NZD/USD Signals
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short trade following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6871.
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.
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.
The poor Australian data has dragged the price down after it initially found some support at 0.6871 as I had been expecting. The price has continued to fall and seems to have invalidated the former support level at 0.6841, leaving nothing to hold up the price from a large drop except a reasonably long-term bullish trend line, which is shown in the chart below. If this trend line breaks, it will be a very bearish sign. Yet I am wary of taking a long trade here, and I have no bias now on this Forex currency pair.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.