Last Wednesday’s signals produced a losing long trade following a bullish inside bar break off the support level identified at 0.7337.
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 H1 time frame immediately upon the next touch of 0.7254 or 0.7214.
- 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 0.7344.
- 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
Despite swinging down and continuing the move ever since the FOMC announcement last Wednesday, the price is still well established within a wide bullish channel, suggesting it will recover and turn upwards. A bullish double bottom has formed at the support identified confluent with a major psychological level at 0.7250. I expect the price will probably begin to turn around at or above this level, before rising to test 0.7344. A break above 0.7344 would be a bullish sign. The NZD attracts some interest as it pays the highest overnight interest of any major currency, and due to the fact there has just been a general election in New Zealand, which has produced an unexpectedly inconclusive result.
There is nothing important due today concerning either the NZD or the USD.