Last Thursday’s signals produced a nicely profitable short trade from the bearish inside candle’s rejection of the resistance level identified at 0.7240.
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 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 Trades
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7240 or 0.7344.
- 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 resistance level has continued to hold, and although the nearest support is slightly broken and weakening, it is still making its presence felt at 0.7128. As it is looking more used up, I would not be looking to take a trade at a bullish bounce here, instead looking to the level below at 0.7117. The period of consolidation continues and this pair does not have anything exciting about it today. There will probably be better opportunities elsewhere and I have no directional bias.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of ISM Manufacturing data at 3pm London time.