Last Thursday’s signals produced a losing short trade following the bearish pin candle rejecting the identified resistance level at 0.6986, which was stopped out by the spike after the Non-Farm Payrolls data.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6859.
* 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 0.6947 or 0.6986.
* 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
We remain within a clearly defined, albeit slow, bearish trend, with a dominant bearish trend line as shown in the chart below. We are seeing new resistance levels form as probable support levels are broken down. At present, there is no obvious support before 0.6859 which is a long way away below. The price is in a long-term bearish trend, below its level of 3 months back. For these reasons, there is no reason to be anything other than bearish.
There is nothing due today regarding the NZD. Concerning the USD, the Chair of the Federal Reserve will be speaking at a conference at 9:10pm London time.