Yesterday’s signals were not triggered as there was no bearish price action in the zone between 0.7190 and 0.7210.
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.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.7210 and 0.7194.
- 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 0.7275.
- 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 finally broken above a major bearish trend line. The New Zealand Dollar can no longer be called one of the most bearish currencies of recent weeks. Yesterday saw a strong break above what had looked to be an important zone of resistance, which has now probably flipped to support. I forecasted yesterday that if the price broke past it, it should also reach the trend line, and this is what happened. The nearest resistance level above is now at 0.7275, which is an important level to watch.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.