Yesterday’s signals were not triggered as there was no bearish price action at either of the resistance levels that were reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 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 0.6986 or 0.6960.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7039.
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
This pair has been looking completely bearish but yesterday saw a very strong bullish reversal, similar to what happened in the AUD/USD. The bearish trend line has been broken and two resistance levels have seen the price cut through them like a knife through butter. The price action still looks bullish twelve hours later although there are initial signs of a slowdown. The major question is now whether the psychologically key 0.7000 will continue to act as effective resistance.
The pair is still technically in a long-term bearish trend.
Concerning the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time, followed by Preliminary UoM Consumer Sentiment number at 3pm. It will be a public holiday in New Zealand today.