Last Monday’s signals were not triggered, as neither of the specified key levels were reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time today.
Short Trade
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6783.
- 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
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6698 or 0.6635.
- 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.
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 Monday that it looked as if the price would be more likely to fall than to rise, but any movement would probably be very small. This was a good call as it was exactly what happened. The price is still quite flat which is not surprising as New Zealand has not returned from holiday yet but will in a few hours. This means we are likely to see more movement here later. The medium-term momentum is definitely with the bears, but this means little as the price is still basically ranging erratically with only short-term trends meaning I have no confidence in forecasting which direction the price is most likely to move over the next few days. The best that can be said is that the support level just below at 0.6698 stands out as most likely to be strong technically and it is also confluent with the round number at 0.6700 so a long from a bounce there might be a good set-up.
There is nothing important due today concerning either the NZD or the USD.