Yesterday’s signals were not triggered as the resistance level at 0.7318 was hit and rejected before the specified session began.
Today’s NZD/USD Signals
Risk 0.75%
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 touch of 0.7153.
- 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 Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7318 or 0.7359.
- 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 yesterday that 0.7318 might act as major resistance but that a bearish turn there would probably take time to develop. I was right on the first count, but wrong on the second, as the turn was immediate and sharp, in fact it even occurred before the New York session got underway. The action has continued to develop with mild bearishness, as one of the several supportive short-term trend lines has broken down. If the price continues to fall and break the next two trend lines, then an accelerating trip down to 0.7153 becomes likely. There is no long-term trend and I have no bias,
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.