Yesterday’s signals produced a losing long trade following the bullish doji candlestick which rejected the former support level at 0.6787.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6787.
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 I had a weakly bullish bias and saw 0.6787 as a key support level. This did not work out very well, with the price breaking below it and currently showing some clear short-term bearish momentum. The price chart below shows the medium-term picture is choppy and inconclusive: like the AUD/USD currency pair, but not as bad – this is the better option of the two currency pairs to be trading now. It looks as if the price will probably now head down to 0.6750, which could produce a bullish bounce good enough for a long trade entry, as it is a key psychological level. I have no directional bias beyond being slightly bearish above 0.6750 as at the time of writing
There is nothing important due today concerning either the NZD or the USD.