Last Thursday’s signals were not triggered, as there was no bearish price action at 0.6635.
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
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6720.
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 Trades
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6635, 0.6579, or 0.6569.
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 last Thursday that this pair simply had a very bullish picture and the price has a good chance to rise higher to at least 0.6635. I had a bullish bias above 0.6600 until 0.6635. This was a great call as the price easily and quickly made 0.6635 and soon added about another 50 pips on top of that. Thursday saw a very strong close which was the highest of the previous 20 days, with high volatility, which suggested an upwards movement. However, the momentum may have already played out. The best sign of whether there is bullish momentum will be whether the price bounces at 0.6635 (which has already held as flipped resistance to support), or whether it easily get to an area above 0.6700. I would take a bullish bias if either of these scenarios occur today.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.