Yesterday’s signals were not triggered, as the bullish price action took place below the support level identified at 0.7262.
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 Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7254
- 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 Trade 1
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 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
I have held a bullish bias on this pair for a few days. The situation now looks even more bullish, with a clear higher low which has now produced a big bullish swing. 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 0.7254. Unfortunately, my earlier support level which was forecasted at 0.7262 was a little off. The new level should be strong, as it is confluent with a big quarter-number psychological level at 0.7250.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Building Permits at 1:30pm London time.