Last Wednesday’s signals were not triggered, as there was no bearish price action when the resistance level at 0.7117 was reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be entered from 8am New York time until 5pm Tokyo time, during 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 0.7123 or 0.7102.
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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7240.
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 last few days have seen a significantly strong bullish move, which included a breakout above the bearish trend line channel which had dominated the price action for a long time. The price has been advancing since Wednesday, and after making an orderly pullback earlier, has started to rise with another impulsive bullish movement. It makes sense to maintain a bullish bias for as long as the price stays above the probable minor support and psychological confluence at 0.7150. There are no key resistance levels until 0.7240, so the price has some room to rise further.
It makes sense to compare the NZD to the AUD as they are usually so strongly correlated. Today it looks as if the NZD is stronger than the AUD.
There is nothing significant due today concerning the USD. Regarding the NZD, there will be a release of CPI at 11:45pm London time.