NZD/USD Signal Update
Yesterday’s signals produced a losing long trade following the bullish engulfing candle rejecting the support level identified at 0.7182.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 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 0.7119.
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 0.7228.
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
This pair continues to be strong, with the bullish trend remaining intact. This pair has reached above its price levels of 3 and 6 months ago, and this is a great technical indicator for the establishment of a long-term bullish trend. It still looks like an excellent vehicle to use for exploiting weakness in the USD, especially as the short-term trend is also bullish. The new support at 0.7119 is a very clean and exact flip from resistance to support.
There is nothing due regarding the NZD. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm London time followed by Crude Oil Inventories at 4pm.