Yesterday’s signals produced a short trade following the small bearish pin candle rejecting the resistance level at 0.7177, but this only produced the minimum 20 pips of profit to break even.
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 Trade 1
- Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.7240.
- 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 bearish trend line shown in the chart below is still dominant, as it held after a strong challenge by the bulls who are showing some more fight here with stronger buying. A break above the trend line would be a bullish sign and a test of the next resistance level might follow. This pair is still far away from the real action in the market and as such there is little more commentary to add. There will probably be better opportunities elsewhere today.
There is nothing significant due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change Forecast at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, Crude Oil Inventories half an hour later, and then finally Janet Yellen opening a conference at 8:15pm.