Yesterday’s signals produced an excellent short trade entry following the rejection of the trend line at 0.7279, which would have produced a very profitable and large reward to risk ratio. It would probably be a good idea to cash in now.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered between 8am New York time and 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 0.7153.
- 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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend lines currently sitting at about 0.7274 and 0.7294.
- 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
We finally have some movement and unsurprisingly, it is downwards. At present, it is all about trend lines, and has been for a while – as can be seen in the chart below. My bias becomes more bearish, as we are seeing bullish trend lines broken, and new bearish trend lines holding, and it even seems as though a new bearish channel has formed. A break below the lowest possible trend line at about 0.7220 could prompt a sharp fall in the price.
There is nothing due today concerning either the NZD or the USD.