Yesterday’s signals were not triggered, as there was no bearish price action at 0.7248.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered as between 8am New York time and 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 0.7262.
· 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 Trade
· Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7187.
· 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 wrote yesterday that I had no directional bias, but I thought that the area at about 0.7250 would be a good test of whether the picture was becoming more bullish than bearish. Based upon that analysis, the bulls are getting the upper hand as they are managing to push the price above 0.7248, which is now showing early signs of acting as support. However, there is resistance at 0.7262 and probably a little way above that at the bearish trend lines shown in the price chart below, which complicates the picture. I have no bias and would prefer to stand aside on this currency pair today.
There is nothing due today concerning either the NZD or the USD.