Last Thursday’s signals were not triggered, as unfortunately the bearish turn took place just a few pips above the given resistance level of 0.6781.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered and closed between 8am New York time and 5pm London time today.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6783.
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 Trade
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6698.
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.
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 the picture was looking more bearish as we had not only had quite a strong downwards move, but the NZD and AUD were the weakest of all major global currencies during this move, even weaker than the generally weak USD, which was notable. This gave me the confidence to be prepared to take a bearish bias if the price retraced to hit the new lower resistance level at 0.6781 and rejected it with a clear bearish reversal. This was a good call as it happened as looked for but just a few pips higher. I have now adjusted that resistance level to 0.6783.
Trading is very thin and will remain so during today’s short pre-holiday session. It looks as if the price is more likely to fall than to rise today, but any movement will probably be very small.
There is nothing important due today concerning either the NZD or the USD.