Yesterday’s signals were not triggered as none of the key levels were ever reached.
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 0.7391.
- 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
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7485.
- 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
The consolidation above 0.7391 continues, but overall the situation looks more bullish than it does in the closely correlated AUD/USD currency pair. This might be misleading, as there is important Australian economic data due for release later which may have a major impact upon the price in either direction. This pair remains in a long-term bullish trend, which has been particularly strong over recent weeks, so I see no reason not to have a bullish bias here. However, the next resistance level of 0.7485 is a long-term inflection point, so it might be difficult to break.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.