Yesterday’s signals were not triggered, as none of the key levels identified have been reached.
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 0.6867.
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 0.7035.
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
I wrote yesterday that it was probably wise to just try to trade the flow for now if you are going to trade this pair, and the flow currently remains bearish. The price continued to move lower after retracing to a psychologically important round number at 0.7000, from where it sold off again sharply. There is no reason not to maintain a bearish bias, and the price still has room to fall further to the next obvious support level of 0.6867. This pair has the highest volatility in the Forex market now, which can make it attractive to trade, even though there is no true clear long-term trend.
There is nothing significant due today concerning either the NZD or the USD.