Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken from 2pm New York time until 5pm Tokyo time, over the next 24-hour period.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the supportive trend line currently sitting at about 0.7253.
- 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 Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7359.
- 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
There is no change to the technical picture from the past few days. The price is still in a bullish channel as the lower channel trend line continues to hold. However, the price has continued to grind down, and break an inner supportive trend line, which is a slightly bearish sign. Therefore, we will probably now see a movement down to the true lower channel trend line at about 0.7253, where a long trade entry following a bullish bounce there would make sense.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.