NZD/USD Signal Update
Yesterday’s signals were not triggered although the anticipated resistance level at 0.7080 held very firmly. This is because the first rejection was an inside bar that broke to the wrong side next candle, so it was not a valid signal.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6982 or 0.6945.
Place 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 run.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7100.
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.
NZD/USD Analysis
The area of resistance at around 0.7080 to 0.7100 was tested and it held firmly. However the long-term trend is bullish, we have just recently had a break of a short-term bearish trend line, and a newly pivotal level at 0.7023 holds as support. These are all clues that indicate we are most probably going to see another test of that key resistance above. I would be interested in looking for a short at the level higher than the last swing, i.e. at 0.7100, but I think the most pips are probably going to be on the long side over the near future
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There is nothing due today concerning the NZD. Regarding the USD, there will be releases of CPI, Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time.