Yesterday’s signals were not triggered, as there was no bullish price action when the price reached 0.7460.
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 0.7391.
- 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 Trades
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7460 or 0.7524.
- 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 price has broken below a key support level, which looks as if it has flipped to become resistance, after forming a double top at 0.7524. These are bearish signs. The chart below is technically interesting, as another bearish sign can be seen in that a symmetrical bearish channel is beginning to dominate the price, which is also bearish. The major bullish factor is that a long-term supportive trend line is still holding up the price. If this breaks down and the support at 0.7391, the price could be likely to fall strongly, despite the long-term bullish trend. The European currencies such as the Euro and British Pound are looking much stronger against the U.S. Dollar than are the Australian and New Zealand Dollars.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time followed by Crude Oil Inventories at 3pm.