Yesterday’s signals were not triggered, as neither of the key levels were reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York timeTuesday until 5pm Tokyo time Wednesday.
Short Trade
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of0.6636.
- 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
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6579, or 0.6569.
- 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 it was hard to see whether the bulls or bears would prevail, but we will soon get to a point where there has to be either a major bearish breakdown below 0.6569 or a bullish break above the trend line shown in the chart below.
The price has continued to move in a relatively bearish way, with key resistance holding and the price remaining contained by the bearish trend line which has been in place over the medium-term. In fact,we can now draw a bearish channel which is quite symmetrical which is another bearish sign, as is the fact that the price is close here to long-term lows.
I am still waiting for a breakout above 0.6636 or a breakdown below 0.6569, with the latter likely to be especially significant if it happens.
There is nothing important due today concerning the USD. Regarding the NZD, there will be a release by the RBNZ of their Monetary Policy Statement, Rate Statement, and Official Cash Rate, followed by the usual press conference.