Yesterday’s signals were not triggered as the bullish price action took place a little way below the anticipated support level of 0.7254.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken from 8am New York time to 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 0.7214 or 0.7178.
- 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 0.7254 or 0.7344.
- 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
The “risk off” market sentiment continues to prevail, and this has pushed the price of this pair down, flipping a psychologically important former support level at 0.7254 to resistance, and leaving the technical picture more bearish today than it was yesterday. The lower trend line shown in the chart below has also been invalidated, which makes further downwards movement a little more likely. This pair is still far from the heart of the market, and I maintain no directional bias. There will probably be better opportunities in other currency pairs.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by the Chair of the Federal Reserve speaking at 5:45pm.