Yesterday’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 entered between 8am New York time and 5pm Tokyo time, over 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 0.6986.
- Put the stop loss 1 pip below the local swing low.
- 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.
Short Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7087.
- Put 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 noted yesterday that this pair was looking increasingly bullish, as we saw the former resistance level at 0.6985 flip to act as new support, and the upper trend line of the bullish channel broke. This pattern has continued, with the price again rising in a strong and clear bullish wave from an area near the support at 0.6986. In fact, the NZD is currently the strongest of all currencies over the short-term.
The long-term trend is indeterminate.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time followed by the FOMC Meeting Minutes at 7pm. Concerning the NZD, New Zealand will be releasing its annual budget at 3am.