Yesterday’s signals were not triggered as none 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 0.7153 or 0.7117.
- 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 Trades
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7256 or 0.7275.
- 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
I wrote yesterday that with the price breaking below the psychologically key 0.7250 level, as well as key support at 0.7275, it looked as if the price had further to fall over the coming days. The price has indeed continued to fall, with the New Zealand Dollar generally very weak. There may be some support at the broken trend lines close by below, but they look unreliable, and there is no probable supportive horizontal level before 0.7153. This suggests that the price will fall still further, there has not yet even been a single higher low for almost a week.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.