Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades may be entered between 8am New York time and 5pm Tokyo time, over 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 the bearish trend lines currently sitting at about 0.7270 and 0.7285.
- 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
We still have a bearish bias, and it is still all about the trend lines with this currency pair. I had thought yesterday that a break below 0.7220 might trigger a sharp fall, but it was not to be, as there was a recover from the low. In fact, a new lower channel trend line can now be drawn connecting that low with a previous low. This seems to give a truer channel as the major boundaries are now symmetrical. Trades from the trend lines both long and short could be attractive, but I maintain a bearish bias.
There is nothing due today concerning the NZD. Regarding the USD, the Chair of the Federal Reserve will be testifying before the House Financial Services Committee on monetary policy at 3pm London time, followed half an hour later by Crude Oil Inventories.