NZD/USD Signal Update
Last Thursday’s signals triggered a long trade following the bullish inside bar break from the rejection of the support level I had identified at 0.7178.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7241 or 0.7285.
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
This pair took a strong drop after the central band talked down the NZD, but it has recovered, making a gradual and convincing-look bullish turn at the key support level I had identified at 0.7178. As this level looks to be “used”, I would not go long there again yet, and would prefer instead to wait for the price to reach 0.7119.
A sustained break up above the resistance at 0.7241 and the key psychological level at 0.7250 would suggest that bulls have regained control and would be again pushing along the long-term bullish trend.
There is nothing due today concerning either the NZD or the USD.