Last Thursday’s signals were not triggered, as there was no bearish price action at either 0.7250 or 0.7275.
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
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7228.
- 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 Trades
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7337.
- 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
This pair has changed shape radically over the past few days, and is now looking much more bullish, with very clear and strong impulsive bullish movements, which have broken a very long-term and formerly dominant bearish trend line. A move up to the next resistance level looks likely, but any retracements to support followed by bullish rejections should be excellent opportunities to enter a long trade. I’ve switched my outlook to a bullish bias.
There is nothing due today concerning either the NZD or the USD.