Yesterday’s signals were not triggered, as neither of the key levels have been reached yet.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered from 8am New York time to 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
Go long following a strongly bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6867.
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 0.7035.
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
I wrote yesterday there is no reason not to maintain a bearish bias, and the price has continued to fall, although not particularly strongly. 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 certainly a strong medium-term bearish trend, which is quite likely to carry the price eventually to the nearest support level at 0.6867.
There is nothing significant due today concerning the NZD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time, followed by Crude Oil Inventories at 3pm.