Last Wednesday’s signals were not triggered as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of the trend line at about 0.6842.
- Place 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 0.6986.
- Place 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
The price continued lower at the end of last week as I expected. It is in a long term downwards trend, with the NZD being one of the weaker major currencies. However, the price is certainly being supported by a zone centred around 0.6850, and I see the lower bound of that zone at 0.6842 as remaining interesting for a possible long trade entry if there is a strong bullish rejection there.
So far, the bullish pullback is not very strong or convincing, and the less positive ground it covers, the more likely that another strong downwards thrust will begin.
There is nothing due today regarding the NZD. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, preceded by a minor speech from the Treasury Secretary at 12:45pm.