Yesterday’s signals were not triggered, as the bearish price action took place above the resistance level identified at 0.7374.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
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 touch of 0.7345 or 0.7304.
· 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
Yesterday I was less bullish, which was a mistake as the price has continued to rise strongly in line with the long-term bullish trend. The resistance level at 0.7374 has been invalidated and the price is making new highs as at the time of writing. There is a new higher support level at 0.7345 and the New Zealand Dollar is currently the strongest of all the major global currencies offered for trading by Forex brokers. Bullish, bullish, bullish.
There is nothing due today concerning either the NZD or the USD.