Yesterday’s signals were not triggered as the bullish price action took place a little below the support level identified at 0.6949.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 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 Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6986 or 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
We remain within a clearly defined, albeit slow, bearish trend, with a dominant bearish trend line as shown in the chart below. The nearest support level at 0.6949 essentially held when it was reached yesterday, and the price also topped just a couple of pips below the nearest resistance level, so the levels are having an effect.
The support below at 0.6949 looks very important to the medium-term future direction of this currency pair, a true break below and we could see a meaningful downwards movement with trend traders moving in to short the long-term bearish trend.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of Unemployment Claims data 1:30pm London time.