NZDUSD: 0.6650 area remains pivotal
Yesterday’s signals were not triggered, as none of the key levels were reached within the specified period.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6692 or 0.6730.
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 0.6656 / 0.6650.
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 technically it looked increasingly obvious that the 0.6650 area would probably provide strong support: to be precise, the pivotal point was at 0.6656. I was prepared to take a bullish bias if the level held into the New York session and we saw a strong initial push up from a rejection of it. This was a pretty good call as the price rose from this area although the level was not actually touched.
The price is now being held by the resistance level at 0.6692. I think this area will probably be today’s pivotal point, and if the price can get established later above 0.6700 it is likely to continue to rise. However, it is worth noting that the AUD is currently more strongly bullish than the NZD.
There is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time followed at 3pm by ISM Non-Manufacturing PMI data.