Yesterday’s signals were not triggered, as there was no bearish price action at 0.6772.
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 Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6857.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6765 or 0.6698.
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 I would take a bullish bias once the price had traded above 0.6772 for a couple of hours. This condition was finally met over the past few hours, and after rising the price has pulled back. It looks as if this area may still be pivotal, except I now put it lower, as support at 0.6765. If the price can hold above this level during the London session and into the New York open, I would take a bullish bias. I still think that if the U.S. inflation data is weak, and we see a weakening of the U.S. Dollar as the case for rate hikes is undermined slightly as a result, then the NZD could be the very best currency to be long of against a falling greenback
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of CPI data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 11pm.