Yesterday’s signals were not triggered as there was no bullish price action at 0.7161.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
* Go long 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 run.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.7224 and 0.7241.
* 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 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
An unusual divergence persists between the NZD, which remains weak after its central bank talked it down last week, and the AUD, which remains strong.
The previous near support has now been muddled and broken down, but we see a useful flipped level not far below at 0.7119 which may act as support again.
There is no recovery back into the previous long-term bullish trend, which suggests that we may have seen a major change in sentiment concerning the NZD.
The medium-term trend remains bearish.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of CPI and Retail Sales data at 1:30pm London time followed later by the Chair of the Federal Reserve testifying before Congress at 3pm, and Crude Oil Inventories numbers half an hour afterwards