Last Thursday’s signals produced a profitable long trade following the bullish inside bar break from the support level identified at 0.6986. The trade would still be open and it is probably an excellent idea to try to let part of it any position run.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6986.
* 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
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7087.
* 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
I wrote last week that although the price was drifting upwards, the move did not look very strong and we would be unlikely to see any good trading opportunity. In fact, the price dipped to reach the key support level of 0.6986, then took off bullishly, giving a good long opportunity. There is a nice gentle trend line acting supportively down there, so another dip to the level could provide another long trade opportunity.
There is a long-term bearish trend, but the price is certainly moving against it; it is inactive.
There is nothing due today concerning either the NZD or the USD. It is a public holiday today in New Zealand.