Last Monday’s signals were not triggered, as none of the key levels were reached during that day’s specified time session.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Long Trade 1
Long entry following a strongly bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6986.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7102.
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 New Zealand Dollar has fallen like a stone in recent hours, as it becomes clear that there will be a new Labour-led coalition government following the recent general election in New Zealand. The price has sliced through several support levels like a knife cutting through butter, and the price is still falling as at the time of writing. However, as the psychologically key 0.7000 is approached, the price is likely to begin to stabilize. The next support at 0.6986 would be an attractive area to enter a long trade for anyone convinced this strong movement is a spike which will retrace, although I do not share that opinion. I would want to see an extremely strong bounce at that level before going long.
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There is nothing significant due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.