Last Thursday’s signals were not triggered, as none of the key levels were reached during the specified time.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered until 5pm Tokyo time, during the next 24-hour period.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6996.
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 Trades
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6943 or 0.6910.
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 wrote last Thursday that I had no short-term directional bias, but I would be more comfortable going short than long. As it happened, none of the key levels I highlighted were hit. Since last Thursday, the technical picture has become considerably more bullish, with the price struggling to rise but still making some clear higher support levels, as well as swing lows which can be joined by ascending trend lines, visible in the price chart below. This suggests a medium-term bullish trend is becoming established against the long-term bearish trend and leads me to prefer a weakly bullish bias. A further bullish sign is that there are no obvious resistance levels visible below 0.6996 – that could be a very resistant level as it is so close to the psychologically important major round number at 0.7000. The longer the nearby support level at 0.6943 holds up, the more bullish the picture will feel.
There is nothing due today concerning either the NZD or the USD. It is a public holiday in the U.S.A.