Yesterday’s signals were not triggered, as there was no bearish price action at 0.6640.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6689.
Place 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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6640.
Place 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 wrote yesterday that I remained cautiously bullish above 0.6612 and would be even more bullish above 0.6640. This was a great call as the price continued to move solidly up from both these levels. We have seen broadly a stronger fall in the U.S. Dollar against all other major currencies in recent hours following President Trump’s comments on interest rates. It looks as if the bullish move here might be running out of steam, but it makes sense to remain bullish above 0.6640 today, despite the long-term bearish trend in this currency pair.. The resistance level at 0.6689 may be hard to break and I feel a period of consolidative action is likely now over the short-term, so my bullish bias here is weak.
There is nothing important due today concerning the USD. Regarding the NZD, there will be a release of Retail Sales data at 11:45pm London time.