Yesterday’s signals were not triggered, as there was no bullish price action at 0.7372.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Short Trade
Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7381.
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.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of the ascending trend line shown in the price chart below, which currently sits at about 0.7303.
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.
NZD/USD Analysis
I had a bullish bias yesterday which turned out to be completely wrong, as the price sold off clearly and firmly, printing a new resistance level at 0.7381. A retrace to this level could produce another short trade opportunity, but the price action looks bearish and so we may well see the 0.7300 area first. If the price does get to the round number or close to it, it will have to retest the supportive ascending trend line in the area, which could be good for a long trade if it gives a convincing bullish bounce. In the very short term I have a slightly bearish bias, but no confidence in predicting any longer-term direction.
There is nothing important due today regarding the NZD. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.