Yesterday’s signals were not triggered as there was no bearish price action at 0.6592.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must 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 0.6636.
- 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 ride.
Long Trades
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6558 or 0.6544.
- 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 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 yesterday that the price was trying to make new multi-day high prices above the swing high at about 0.6560. The short-term bullish momentum was strong, and the price had a good distance it can rise without hitting any resistance, as there was no key level above until 0.6592. However, a bearish pullback at 0.6560 was quite possible.
Unfortunately, I was waiting for a pull back to support before taking a bullish bias, which never happened. I was correct to look towards the bullish side as the price has continued to advance firmly, finally breaking out above the 0.6558 swing high.
There is some selling at the round number of 0.6600, but the picture remains bullish although perhaps not very strongly so. The odds are weak but should be in favour of higher prices being made over the next 24 hours, at least until the resistance at 0.6636 is reached.
There is nothing important due today concerning the NZD. Regarding the USD, the Chair of the Federal Reserve will be giving a speech at 2:55pm London time.