By: DailyForex
Yesterday’s signals produced a profitable long trade following the bullish engulfing candlestick which rejected the support level at 0.7178, although it gave only the minimum 20 pips of profit.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
- Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7178 or 0.7117.
- 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
- Short entry following some bearish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.7216 or 0.7254.
- 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
The “risk off” market sentiment continues to prevail, and this has pushed the price of this pair down even further, flipping yet another former support level to resistance as well as invalidating the supportive trend line shown within the chart below. This leaves the technical picture even more bearish today than it was yesterday. The price is currently bunched within a narrow zone between support and resistance, both of which appear to be holding, so a period of consolidation here is quite probable until the big RBNZ release later today, which could push the price anywhere.
Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time, followed by Crude Oil Inventories at 3pm. Concerning the NZD, the RBNZ will be releasing their Rate Statement and Official Cash Rate at 9pm.