NZD/USD Signal Update
Yesterday’s signals were not triggered as neither of the identified price levels were reached during the session.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7208 or the bullish trend line shown in the chart below which is currently sitting at approximately 0.7245.
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 ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7359.
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 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
The bullish trend line continues to hold but the NZD no longer looks to be the most bullish currency against the weak USD – that honour falls to the highly positively correlated AUD instead.
Technically, we have a well-established bullish trend and a supportive trend line below which might now provide another long entry opportunity.
The price is currently stuck at the resistance level of 0.7311 which may hold, but I do not want to rely on that level today.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.