NZDUSD: Weakly bullish above 0.6277
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 0.6348, 0.6365, or 0.6397.
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 0.6277 or 0.6255.
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
The NZD has been relatively weak over recent weeks, making new long-term low prices. However, it has now recovered some strength. This pair seems to have built a bullish base below the key psychological level at 0.6250 and the line of least resistance seems to be upwards. There is also short-term bullish momentum.
I see the best opportunity which may set up over the coming days, though probably not today, as likely to be a long trade from a retracement to 0.6277 if there is a strong bullish bounce there.
If the price can get established above 0.6350, it would be a bullish sign.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time.