Last Thursday’s signals were not triggered as there was no bearish price action when the price reached the anticipated zone of resistance between 0.7083 and 0.7117.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken from 8am New York time to 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 0.7117.
- 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 0.7153.
- 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
This pair is in a very reliable short to medium term bullish trend. The chart below shows the bullish channel holding steadily and resistance flipping to support, with a clear pattern of higher highs and higher lows. There is no long-term trend, but that helps the bullish case as the price is still within the lower half of its long-term range. However, the price is approaching an area which is approximately the halfway point, with strong potential resistance at 0.7150, so a major bearish reversal there would not be surprising.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI at 3pm London time.