Last Thursday’s signals were not triggered, as there was no bullish price action at 0.6640.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of0.6681 or 0.6720.
- Put 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
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6640 or 0.6612.
- 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 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 last Thursday that I was prepared to take a bearish bias below 0.6681, at least until the price reached the next support level at 0.6640. This was a good call, as the price fell directly that day right away to a level even lower than 0.6640 before turning bullish.
This currency pair is in a long-term bearish trend, but we are seeing a medium-term consolidative triangle begin to appear and produce a lower trend line which is holding the price up firmly. Within the triangle, we are seeing quite wide swings in the price both up and down. This suggests that it is going to be challenging to take a directional bias, with a better approach likely to be to trade strong rejections of key levels. The support at 0.6640 looks very strong and attractive, as it confluent with the supportive trend line of the triangle.
There is nothing important due today concerning either the NZD or the USD.