NZDUSD: Bulls losing momentum
Last Thursday’s signals were not triggered, as there was no bullish price action at 0.6382.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time Monday until 5pm Tokyo time Tuesday.
Short Trade Ideas
⦁ Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6430 or 0.6475.
⦁ 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 0.6344 or 0.6315.
⦁ 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 last Thursday that there were enough bullish signs to make me take a bullish bias between 0.6382 and 0.6430. However, I also noted that we still had reasons to expect a major bearish reversal in this area between 0.6450 and 0.6500, so the price may not rise a great deal further.
This was an OK call as the price is up a little since Thursday, but not by much. It has not even been able to reach 0.6430, below the area where I foresaw a bearish turn as looking likely.
I think the best opportunity on this pair will now be to wait until the price gets into the area between 0.6450 and 0.6500 and pick a strong bearish reversal in that zone as a signal to go short if it happens.
Until this takes place, either a long or a short trade from either nearby key level would be likely to provide some profit as long as stop losses are kept fairly tight.
There is nothing of high importance due today concerning either the NZD or the USD.