Yesterday’s signals were not triggered, as none of the key levels were reached within the specified time.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6635.
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 0.6562 or 0.6541.
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 yesterday that the short-term momentum and the technical picture were both with the bears, but when the market eventually turns against the USD, it is likely that we would see a healthy rise here. Although the U.S. Dollar index has continued to advance, which means my theory has not been tested yet, I would be more bearish on the NZD now as both it and the AUD are falling with healthy bearish momentum. The price here remains within the medium-term bearish channel, although it is both near the lower end of the channel and sitting on a support level at 0.6562, so it is probably not a great time for a new short entry. I would be bearish after a strong pullback followed by a clear bearish reversal close to the round number above at 0.6600.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm. The Chair of the Federal Reserve will be giving a minor speech at 9pm. There is nothing due today concerning the NZD.