NZDUSD: Ranging between 0.6600 and 0.6730
Last Thursday’s signals produced a very profitable short trade from the bearish rejection of 0.6693, which should have been closed out for profit by now.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered before 5pm Tokyo time Tuesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6656 or 0.6694.
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 0.6605 or 0.6590.
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 the best approach would probably be to look for a reversal at the extremes: either 0.6656 or 0.6730. This was enough to stay out of trouble but not more useful than that. We may now be seeing a strong bullish double bottom formed at 0.6600 and overall, there is certainly a ranging environment. However, if the price can get above 0.6730 and the big psychological level above that at 0.6750, then we would be seeing a long-term bullish breakout, which would make sense to trade on the long side. Meanwhile, fading reversals at the extremes of 0.6605 and 0.6730 will probably continue to be the best approach toward this currency pair.
There is nothing of high importance due today regarding the NZD or the USD.