Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of the bearish trend line shown in the price chart below, which is currently sitting at about 0.6950, or 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 0.6903 or 0.6884.
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 yesterday that I had no directional bias, but that the picture could be clearer a day later. The picture is indeed clearer now following the strong upwards movement from a supportive area and new support levels pushing the price up from the 0.6900 area. The momentum over the short-term at the time of writing is clearly strongly bullish, but the confluence of a half number and a third tap on a bearish trend line which looks like occurring at 0.6950 might provide a bearish reversal, although I would not be optimistic that it would do very well. I have a bullish bias until that trend line is reached.
Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time. Concerning the NZD, there will be a release of ANZ Business Confidence data at 2 am.