Last Thursday’s signals were not triggered as the price was already established below 0.7153 by the time the New York session began.
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 Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7117.
- 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 entry into the zone between 0.7190 and 0.7210.
- 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 pair has continued to move down within its wide bearish channel. It is more accurate to focus on the upper trend line as it is not a symmetrical channel. The New Zealand Dollar has been one of the most bearish currencies of recent weeks. There has been some support from the 0.7153 area as expected but the level is no longer clear, so for potential support it now makes sense to turn to the lower level at 0.7117. There is new resistance above at 0.7190, so we have a zone from about 0.7190 to 0.7210 where it makes sense to look for new short trades. I maintain a bearish bias.
There is nothing due today concerning either the NZD or the USD. It is a public holiday in the U.S.A.