Yesterday’s signals were not triggered as the price came very close to 0.6974, and even if reached in some price feeds would not have given an entry during the allotted session.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6974 or 0.6949.
* 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 0.7039.
* 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 yesterday that as there is no strong trend, significant bullish reversals at the probable support levels identified below are quite possible. It seems that this may be what is happening now, with the price suggesting the formation of a bullish double bottom at 0.6975. If the bullish move fails and the price continues to break lower, this will be suggestive of a strengthening bearish trend on all time frames, so it is somewhat pivotal area.
Regarding the NZD, there will be a release of GDT Price Index data late in the New York session. There is nothing due concerning the USD.