Last Thursday’s signals were not triggered as there was insufficiently bullish price action when the price reached 0.6996.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period only.
Long Trades
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6974 or 0.6949.
* 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 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
I wrote at the end of last week that if the price gets established below 0.7000, that will be a bearish sign, and this is essentially what is happening. The action is also defined by a dominant short-term bearish trend line. However, there is no strong trend, so significant bullish reversals at the probable support levels identified below are quite possible.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of ISM Manufacturing data at 3pm London time.