Yesterday’s signals were not triggered as there was no bullish price action at 0.6883.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6806.
- 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 0.6861 or 0.6863.
- 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 RBNZ surprised the market with its policy release earlier, which was more dovish than the consensus expectation, and rates were left unchanged. The result was a sharp fall of about 1.60% in value to a new 11-month low.
There is a long-term bearish trend. The chart below shows a slow medium-term bearish trend is also in force, although the swings are very wide.
This pair can be challenging to trade, and rarely trends very strongly. Nevertheless, in the present circumstances it should become more interesting to traders. The key thing to watch for technically is how much of a recovery there is now from the lows. If the two resistance levels just above the 0.6850 area hold, that will be a bearish sign that short trade entries would be attractive.
There is nothing scheduled concerning the NZD. Regarding the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time.