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 entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade 1
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7299.
· 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
· Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7391.
· 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
The long-term bullish trend in this pair is now in serious doubt as the price continues to fall. It has broken strongly below the anticipated support level of 0.7391. Interestingly, the NZD remains clearly weaker than its “sister” currency, the AUD. It is hard to predict the next short-term movement. The key level that really stands out from the long-term charts that looks like the dividing line for the long-term trend is 0.7200, and the price is still a long way from there.
Concerning the USD, there will be a release of Crude Oil Inventories at 3:30pm London time. Regarding the NZD, there will be a release of the RBNZ’s Rate Statement and Official Cash Rate at 10pm, followed 1 hour later by the usual press conference.