Yesterday’s signals were not triggered as the price action at the bullish bounce from 0.7231 was insufficiently bullish.
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 Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the supportive trend line currently sitting at about 0.7220.
- 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 Trade 1
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of the resistant trend line currently sitting at about 0.7298.
- 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
Most currencies have gained strongly against the U.S. Dollar in recent hours and the New Zealand Dollar is no exception. The price has easily broken up above the resistance level at 0.7257, but looks as if it may be held by 0.7275 which is a very key level, and is also confluent with the inner bearish trend line. If this holds until New York opens it may provide a possible short trade, but the higher trend line looks safer at present. Currently, it is probably both too late and too early to get a really good trade entry here.
If the price can get beyond the bearish trend lines, it would be a very bullish sign.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.