Yesterday’s signals produced a long trade following the mild bullish rejection of the support level at 0.6867, but it only made the minimum 20 pips of profit before returning to the entry to be stopped for break even.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Long Trade 1
Long entry following a strongly bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6806.
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 0.6938.
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 the strong medium-term bearish trend was is quite likely to carry the price eventually to the nearest support level at 0.6867, and that this was an attractive pair to trade right now. The level has been reached as predicted, where the price seems to be flattening out. I think however that the price will probably break the level soon and continue to fall further, which is why I would not seek a new long trade entry there.
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.