Yesterday’s signals were not triggered as the bullish price action took place below 0.7280, and the bearish reversal at 0.7359 did not come into play until the Tokyo close.
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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7245.
- 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 0.7359.
- 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 have had a strong upwards movement in this pair, but it is still capped by repeated rejections of a very long-term resistant zone between 0.7359 and 0.7391. Although it does not look as if the price is going to turn bearish or fall quickly, I have severe doubts that the price is going to be able to rise beyond 0.7391. For this reason, I think there are better opportunities in other Forex currency pairs right now, especially the highly correlated AUD/USD pair which is very bullish.
There is nothing due today concerning either the NZD or the USD.