Yesterday’s signals were not triggered as neither of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period only.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7460 or 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 some bearish price action on the H1 time frame immediately upon the next touch of 0.7524.
- 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
There is a strong long-term upwards trend, and there has been no end to the pattern of higher lows, which is a bullish sign. However, we have had a bearish double top at 0.7524 above, which has also printed a clear flipped resistance level, which is reinforced by a short-term bearish trend lines. These are the first signs of a possible deeper pull-back or medium-term trend change, yet it is far from a reason to turn bearish yet.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Concerning the NZD, there will be a release of Employment Change and Unemployment Rate data at 11:45pm.