Yesterday’s signals were not triggered, as neither of the key levels were touched until the end of the Asian session.
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 Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7216 or 0.7178.
- 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 H1 time frame immediately upon the next touch of 0.7262 or 0.7337.
- 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
This pair is starting to look more technically interesting. We have new lower resistance, and a short-term triangle pattern emerging as the support level at 0.7216 holds firm. I do not have much faith in 0.7262 as resistance, I think the two support levels below look much stronger and are significantly more likely to produce good bullish reversals, so I maintain a slight bullish bias for the time being.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of CPI and Unemployment Claims data at 1:30pm London time.