Yesterday’s signals were not triggered as none of the key levels were reached before the end of the Asian trading session.
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 0.7117.
- 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 entry into the zone between 0.7190 and 0.7210.
- 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
The pair has remained 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. The price has now risen to test this zone so we could be close to a new short trade opportunity. If the price succeeds in breaking above the zone, it will probably continue to move up to reach the upper trend line.
There is nothing due today concerning either the NZD or the USD.