Yesterday’s signals may have produced a long trade entry at 0.7275, which would have failed to produce even the minimum profit target of 20 pips.
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 Trades
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7256 or 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
We see more bearish developments, with the price breaking below the psychologically key 0.7250 level, as well as key support at 0.7275. That area now looks as if it has flipped to resistance. There is technically a long-term bullish trend, but for several weeks now the price has been moving down strongly, and failing to find any good support. There may be some support at the broken trend lines below, but they look unreliable, and there is no probable supportive horizontal level before 0.7153. This suggests that the price has further to fall over the coming days.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.