Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7117.
- 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 Trades
- Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7177 or 0.7240.
- 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 was correct yesterday to be wary of the support, which did indeed break down, although the lower level at 0.7117 remains intact, untouched and worth watching out for. The technical picture is a little more bearish today, with the resistant downwards sloping trendline dominating the chart below. There may be an opportunity to go short if the price rejects the new resistance level at 0.7177, especially if it is not touched for the next few hours. However, overall, there will probably be better opportunities in other currency pairs today, although it is worth noting this pair seems to have more life than its sister pair AUD/USD.
There is nothing due today concerning either the NZD or the USD.