NZDUSD: Bearish retracement
Yesterday’s signals were not triggered, as there was no bullish price action at any of the support levels which were reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6747 or 0.6755.
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 0.6698.
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 I was looking for the price to end the day above 0.6850 as a bullish sign. This was a good enough benchmark to use to keep out of trouble, as by the time the New York session was ending, the price had retreated as far as 0.6740!
The picture now is considerably more bearish, although the price seems to have found new support at 0.6718.
If the price can get established soon back up above 0.6755 that would be a very bullish sign, suggesting a forthcoming advance to new long-term highs. If the price cannot reach or exceed 0.6747, that would suggest that the bullishness may have ended, which breaks below any of the support levels shown in the price chart below will all be bearish signs.
There is nothing of high importance due today regarding either the NZD or the USD.