Yesterday’s signals were not triggered as the bullish price action break up from 0.6898 was not fast enough for an entry, although the level did act as good short-term support.
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 0.6883, 0.6859, or 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 0.6926.
- 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
I wrote yesterday that if the price could remain above the broken trend line, it was likely to advance further. The price was not able to break up, and came back below the trend line quite quickly. We can now rearrange the trend lines in the chart shown below, showing clearer downwards pressure, and a long-term bearish trend reasserting itself. The price is likely to get congested now in its current zone, but the area around 0.6850 remains very pivotal to the medium-term outlook. If the price remains between 0.6926 and 0.6859, there are likely to be better opportunities in other currency pairs.
There is nothing due today concerning either the NZD or the USD.