NZDUSD: Bearish below 0.6718
Yesterday’s signals may have produced a profitable short trade from the bearish rejection of the resistance level at 0.6718.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6718 or 0.6747.
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 0.6656 or 0.6632.
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 situation was looking even more bearish now, as the price seemed to be selling off again from the round number at 0.6700 and making new lows. The price had room to fall with no obvious clear support until 0.6656, so I was ready to take a bearish bias on this pair today if the first hour of the New York session saw the price close at a new short-term low price. It did not do so, but my generally bearish outlook was justified as the price has moved lower over the past day.
The technical signs are all bearish, the price is very close to its recent low, the price action is bearish, and the NZD is more bearish than the AUD.
I will again take a bearish bias if the price breaks firmly to a new short-term low at 9am New York time.
There is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.