By: DailyForex
Last Thursday’s signals were not triggered as there was insufficiently bullish price action when the price initially hit 0.6986, although the level did hold and it could have provided a profitable long trade later.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.6986.
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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7039.
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 recent bullishness has held up, with the level at 0.6986 continuing to hold as key support. The pair has broken up out of a bearish channel. There is a long-term bearish trend, but there is also a reasonably long-term supportive trend line below which is successfully holding up the price. It seems that the best judge of near-term movement will be whether the resistance level at 0.7039 holds when it is next tested. This might well happen soon.
Concerning the USD, there will be a release of Building Permits data at 1:30pm London time. Regarding the NZD, there will be a release of GDT Price Index data later during the New York session.