Yesterday’s signals were not triggered, as the bearish price action unfortunately took place a little higher than the resistance level identified at 0.6834.
Today’s NZD/USD Signals
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short trade entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6832.
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 trade entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6750.
Put 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 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.
I wrote yesterday that it looked as if the price had more room to fall, so I had a weakly bearish bias. This was a good call, as the bulls were broken just above the resistance and the price now looks to be moving down quite strongly, in fact more strongly than any other currency pair at the time of writing. It is logical that the New Zealand and Australian Dollars would be hit by new China tariffs fears which emerged last night. There may be minor support at about 0.6790, but it looks as if the price can now continue to move down all the way to 0.6750, so I see no reason not to take a bearish bias now.
There is nothing important due today regarding the NZD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.