Last Thursday’s signals were not triggered, as there was no bullish price action when the supportive trend line was reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7242 or 0.7262.
Put 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 ride.
Long Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7110.
Put the stop loss 1 pip below the local swing low.
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 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 last Thursday that if the price broke below the trend line shown in the price chart below, that would be another bearish sign, suggesting that a return to the psychological level and support which are confluent at about 0.7250 is on the cards. The action over recent hours seemed bearish. This approach worked out well: a short upon the strong break below the trend line would have yielded a lot of pips, and the price fell sharply to a level more than 50 pips below the 0.7250 price target which I mentioned. There are now no supportive levels left until 0.7110 so the price has the potential to fall much further, although the recent swing low in on a par with other recent major swing lows so possibly we will see the price stabilize around the 0.7250 area next instead. I have no bias today as it feels like the move has already played out and there is likely to be a period of consolidation now.
There is nothing due today concerning either the NZD or the USD.