Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6788.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trades
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6822 or 0.6857.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6750.
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 the most that could be said was that the best approach was probably looking to fade exhaustion near 0.6822. I had a very weak short bias now between 0.6822 and 0.6788. This was a good call, as the price did move down and reached levels even lower than 0.6788. However, looking ahead now, this pair is probably going to be difficult to trade profitably today. Just like the AUD/USD currency pair, the price is stuck in a medium-term ranging pattern, ultimately going nowhere. There are a few evenly spaced support and resistance levels around the current price which are very likely to make the short-term price action choppy. Fading reversals from the top and bottom of the price chart would probably be the only worthwhile opportunity which could arise over the next 24 hours. I have no directional bias.
There is nothing important due today concerning either the NZD or the USD.