Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6700.
- 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 run.
Long Trades
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6629.
- 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 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 later if we got a healthy bullish bounce following a bearish retracement to the level at 0.6629, or to a level just a few pips above that – even though just a few days ago we were seeing new long-term low prices made.
The price never reached that level or even got close to it, but the picture has remained generally bullish and my bullish approach has turned out to be correct so far.
Another bullish sign is that the NZD continues to hold up better than the AUD.
It may be best to avoid trading this pair in the meantime until we get a little more direction, but I would still look for a long trade from a bounce at 0.6629.
.jpg "nzdusd")
Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Regarding the NZD, there will be a release of Employment Change and Unemployment Rate data at 11:45pm.