Last Thursday’s signals were not triggered, as the support level at 0.6993 was not quite reached.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7053 or 0.7106.
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
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6993 or 0.6945.
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 had no directional bias last Thursday. It is interesting that over the past few days, the support at 0.6993 which I thought would be crucial has held, but not convincingly – the price is still stuck within a range and is not truly able to rise. This suggests that it is now becoming less likely that we are going to see a medium or long-term major bullish reversal here. A break below 0.6993 would be a bearish sign.
The short-term price action is bearish, and I have a bearish bias between 0.7053 and 0.6993.
There is nothing due today concerning the USD. Regarding the NZD, there will be a release of Inflation Expectations data at 4am London time.