Yesterday’s signals were not triggered, as there was no suitable price action at any of the several key price levels which were reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7460.
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.
Long Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7364 and 0.7347.
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.
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 was correct to take a bullish bias yesterday, and to see a rise to 0.7346 as likely, with the price rising firmly, breaking quite cleanly above a total of three resistance levels. The NZD remains somewhat stronger than the AUD, which is always something to watch out for, and another reason to be bullish. Additionally, the price is in a long-term bullish trend now, and the bullish break of the trend line shown in the price chart below was a major technical development. It should be noted however, that the psychologically critical area around 0.7500 is not far ahead, which the price may find difficult to break quickly or at all.
Regarding the USD, there will be a release of PPI data at 1:30pm London time. Concerning the NZD, there will be a release of Business NZ Manufacturing Index data at 9:30pm.