Yesterday’s signals produced a nice short trade entry just as anticipated, with a bearish pin candle rejecting the long-term bearish trend line confluent with 0.7298 producing a winning trade. It would probably be a good idea to exit from any remainder of the position held, for additional profit.
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 Trade 1
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7391.
- 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
I was correct yesterday in looking to the higher bearish trend line as a likely reversal point. However, floating profits should be booked as there is a fine balance between bulls and bears, as evidenced by the consolidating triangle pattern shown in the chart below. The bearish pressure currently looks stronger than the bullish pressure, but in this case, it would probably be that a bullish break would produce a relatively stronger move than a bearish break would.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Preliminary GDP data 15 minutes later, and then finally Crude Oil Inventories numbers at 3:30pm.