NZD/USD Signal Update
Last Thursday’s signals were not triggered as none of the key levels were reached during that session.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7075 or 0.7043.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7182.
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
This pair has been strong and has now reached a level which is higher than its price of 3 months ago, which is a key metric I like to use in determining a long-term trend. However, such major reversals usually take a while to get established so it might be early to be long-term bullish. Over the short-term, the best opportunity is likely to be a long trade.
The price is finding it hard to hold above 0.7150, but there is plenty of good support below: two horizontal levels and a trend line, at least one of which should hold this week and provide a buying opportunity.
There is nothing due today regarding the NZD or the USD. It is a public holiday in the U.S.A.