Yesterday’s signals were not triggered as the possible bullish bounce at 0.7153 did not begin until after the specified time session had ended.
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 bullish bounce from 0.7153, provided the level holds, or at a lower bounce from 0.7117.
- Put 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 0.7210 or 0.7275.
- Put 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 price continued to fall yesterday from the major turn at the long-term trend line confluent with 0.7275, and has already reached the nearest key support level at 0.7153 which is containing the move for the time being. This is a strong fall for this pair, and with the resurgent U.S. Dollar, it appears that the Australasian currencies are relatively the weakest. There is a lot of bearish pressure, but the support here at 0.7153 is strong, so it is quite likely to hold for some time, unless the U.S. data due tomorrow is significantly stronger than expected.
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.