NZDUSD: Bulls have a small edge
Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trade Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6322.
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 Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6250.
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 due to the more bullish price action seen on shorter-term charts, there was a suggestion we would now see a deep bullish pull back or possibly even a more serious bullish reversal. This was a good call as the forecast came true with the price rising meaningfully.
There appears to be some minor resistance at the round number of 0.6300 which is holding up any further advance for the time being.
I now see the resistance at 0.6322 as looking very strong, but the support at 0.6250 also looks very solid, so trading a rejection and reversal at either level will probably be a good approach. However, the price is halfway between these two levels, so the price is quite likely to consolidate for a while now.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Concerning the NZD, the RBNZ will release its Official Cash Rate and Rate Statement at 3am.