NZD/USD Signal Update
Yesterday’s signals produced a losing long trade following the bullish outside candle rejecting both the support level identified at 0.7292 and the bullish trend line a few pips below that level.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7208.
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 touch of 0.7359.
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
The bullish trend is slowing down. The long-term supportive trend line has broken, although the price is still basically holding up. There is support at 0.7285 yet it has been hit a few times and I would not want to go long off another bounce there. A pull back to 0.7208 seems overdue and that is where I see the next potential long trade opportunity.
This pair needs to break up above 0.7400 to really become a strong true bullish trend.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the NZD, there will be a release of the RBNZ Rate Statement and Official Cash Rate at 8pm, followed by the usual press conference one hour later.