Yesterday’s signals were not triggered as although the price did reach the anticipated support level at 0.7391 right at the end of the Asian session, there has been insufficiently bullish price action to justify a long trade entry.
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 0.7391.
- 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 0.7460.
- 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
The long-term bullish trend in this pair is now in serious doubt as the price continues to fall. It has now reached the anticipated support level of 0.7391 which has held, but it looks more like the level is holding from the exhaustion of the move rather than any strong buying. The level may not hold for much longer, and the bearish channel’s lower trend line has already broken down, indicating that a further fall over the near term is likely.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims at 1:30pm London time followed by ISM Non-Manufacturing PMI data at 3pm.