Yesterday’s signals were not triggered as there was an hourly close well above the resistance level identified at 0.7068.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered from 8am New York time until 5pm Tokyo time, over 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 0.7010 or 0.6974.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.7068.
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
I pointed out yesterday that although the long-term bearish trend is no longer in force, the NZD’s rise against the U.S. Dollar has been quite muted, so it is no surprise to see the greenback beginning to make up some ground. At the moment, the directional outlook looks quite neutral, with shorts maybe looking a little more attractive than longs.
Concerning the USD, there will be a release of Crude Oil Inventories at 2:30pm London time. Regarding the NZD, there will be a release of GDT Price Index data late in the New York session.