NZDUSD: New bullish 3-month high
Last Thursday’s signals produced an excellent and very profitable long trade following the bullish doji candlestick which rejected the key support level at 0.6656.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time only.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6730, 0.6747, or 0.6781.
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 Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6687 or 0.6656.
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 last Thursday that we were seeing bullish price action. I was correct to be looking towards the bullish side, as the price has continued to rise firmly, steadily creating new higher support levels which are holding firm. The NZD is also moving up more strongly than the AUD with which it typically enjoys a high level of positive correlation and has in fact just about reached a new three-month high price.
The signs are all bullish, but there will be a release later of key New Zealand inflation data which might push the price down. On the other hand, if the data triggers an extended move which gets established above the key psychological level of 0.6750, that would be a very bullish sign and suggest a further rise is likely.
Concerning the NZD, there will be a release of CPI (inflation) data at 11:45pm London time. There is nothing of high importance due today regarding the USD.