NZD/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 0.7048.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7075.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7182.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 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 have been writing recently about how this pair was hard to predict and was becoming less positively correlated with its sister pair the AUD/USD.
Yesterday’s reversal against the USD saw this pair take off bullishly with technical perfection, launching from a pin candle rejecting the supportive trend line I draw on yesterday’s chart. The price broke up past two former resistance levels and has used each of them for further upward movement, which is a strongly bullish sign.
The NZD, along with the AUD, is a strong vehicle now for benefiting from a weaker USD.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time.