Last Thursday’s signals were not triggered as none of the key levels were reaching during that session.
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 0.7231.
- 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 0.7257 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
This pair has been held for a long time by two major bearish trend lines. It continues to persistently make lower major lows. These give weight to the bearish case. However, over the past few days, we have seen a near U-shaped bottom form at the 0.7200 area, and a higher horizontal support level form at 0.7231. These suggest we are seeing a potentially bullish move, but if 0.7275 holds firm as resistance, I maintain a bearish bias.
There is nothing due today concerning either the NZD or the USD.