NZDUSD: Still bearish below at 0.6619
Yesterday’s signals may have produced a long trade during the Asian session from the bullish bounce at the support level identified at 0.6590. This trade is in floating profit at the time of writing, it might be wise to make sure it doesn’t become a losing trade by moving the stop loss to breakeven now.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6619, 0.6641 or 0.6656.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6590 or 0.6558.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 support level at 0.6615 would again be the pivotal point of the day. I thought that there may have been greater potential in a long trade from there following a firm bullish bounce and rejection of the level than a short, as there was a round number plus another support level at 0.6590 very close below that.
This was a good forecast, as the price fell further after breaking below 0.6615, making a low at the support level of 0.6590 which I also highlighted.
I’ve adjusted the pivotal point slightly to 0.6619 and it is again quite likely to be today’s pivotal point. The medium-term trend is still bearish, so a failure to break above 0.6619 could well give another short entry.
On the other hand, there are very major U.S. data releases due later today, which could push the price anywhere with a high level of volatility, so it may be best to stand aside until after the FOMC releases. For this reason, I take no directional bias for the day on this currency pair.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm and the FOMC Press Conference half an hour after that.