Yesterday’s signals were not triggered as there was no bullish price action at 0.7244.
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 0.7153.
- 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 0.7275.
- 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. I would say that once the price gets below 0.7200 it has little prospect of reviving. Over the medium term, this pair remains in a strongly bearish trend, with the price suppressed by clear and dominant bearish trend lines shown in the chart below. A further bearish sign was the break below a former resistance level at 0.7244. It looks as if new resistance has formed at 0.7253 but as this has just been touched I do not look to it. Instead, the next resistance level above, at 0.7275, is quite confluent with the bearish trend lines, so it looks an attractive place to seek a new short trade.
Concerning the NZD, there will be a release of PPI Input data at 11:45pm London time. Regarding the USD, there will be a release of Building Permits data at 1:30pm, followed by Crude Oil Inventories at 3:30pm and FOMC Meeting Minutes at 7pm.