Yesterday’s signals were not triggered, as there was no bearish price action at 0.6822.
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 only.
Short Trades
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6857 or 0.6888.
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 Trades
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6822 or 0.6770.
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 just like the AUD/USD currency pair, the price was stuck in a medium-term ranging pattern, ultimately going nowhere. There were a few evenly spaced support and resistance levels around the current price which were 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 had no directional bias. This was a good call, but the picture now looks a little more bullish. If the price can get established above 0.6822, I would take a weakly bullish bias later today. The Forex market is challenging to trade right now anywhere.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.