Last Thursday’s signals were not triggered, as the bullish reversal took place below 0.7216 but above 0.7178.
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
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7262 or 0.7214.
- 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 Trade 1
- 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
Last week I was maintaining a slight bullish bias which paid off, as the price has risen and the situation now looks more bullish still, with resistance being broken and a clearer and longer ascending trend line holding up the price. This is a more interesting pair than AUD/USD right now, with the NZD decidedly stronger than the AUD. I see the most exciting potential opportunity as a long following a bullish bounce after a pullback to the nearest support level at 0.7262.
There is nothing due today concerning either the NZD or the USD.