Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.6636.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade
- Go short 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 0.6636 or 0.6605.
- 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 although there was some selling at the round number of 0.6600, the picture remained bullish although perhaps not very strongly so. The odds were 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. This was a good call as the price did continue to rise and in fact the NZD has risen very strongly, even getting established, it seems, above what looked likely to be strong resistance at 0.6636.
The rise may be somewhat over-extended now. Watch to see whether the price can remain above 0.6636 as the day goes on. If it does, that would be a very bullish sign. The price also has room to rise. However, a bearish retracement to 0.6605 is quite possible – if this happens and there is a strong bullish bounce there, I would take a bullish bias on this currency pair.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.