Last Thursday’s signals gave an excellent and very profitable long trade off the bullish rejection of the lower boundary of the supportive zone, identified at 0.6842. The price looks as if it may well continue to rise further.
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
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.6898 and 0.6883.
- 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
I wrote last Thursday that a bullish bounce from the 0.6850 could provide a good reward to risk opportunity even though it would be against the long-term trend. It seems I wasn’t the only trader with this idea, as the price has risen strongly from that area, and broken bullishly above the dominant bearish trend line as it printed fresh support levels. If the price can remain above the broken trend line, it is likely to advance further.
There is nothing due today concerning either the NZD or the USD.