Last Monday’s signals were not triggered as none of the key levels were ever reached.
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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.6859 and 0.6842.
- 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 0.6986.
- 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
This pair remains in a long-term bearish trend, but I see the AUD/USD as a highly correlated and better placed pair to use to follow this move, mostly because there is a strong area of support centred around 0.6850. A bullish bounce here might provide a good long trade in terms of potential reward to risk.
Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time. Regarding the NZD, there will be a release of Inflation Expectations data at 4am.