Yesterday’s signals were not triggered as there was insufficiently bullish price action at either of the support levels at 0.6630 or 0.6652.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered before 5pm Tokyo time Thursday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6615 or 0.6630.
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 Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6590, 0.6558, or 0.6553.
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 the longer the support at 0.6604 held, the more bullish the outlook would become. I saw this support level as having a long-shot chance of being a major bottom. It did not play out that way, with the price breaking lower over the past day. However, we did have a sharp rejection of the support level below 0.6600 at 0.6590, and there are signs that the recent movement down has now reached a major bottom, although it is probably too early to go long. The situation will probably become clearer after the FOMC minutes release due later.
The first bullish confirmation sign will be a sustained break above the resistance level at 0.6615.
There is nothing of high importance due today regarding the NZD. Concerning the USD, the Chair of the Federal Reserve will be testifying before the House of Congress at 3pm London time, and there will be a release of FOMC Meeting Minutes at 7pm.