Yesterday’s signals produced profitable trades on both the long and short side! The short trade should probably be closed in profit by now.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 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 0.6883.
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
Yesterday’s closest support and resistance levels turned out to be spectacularly accurate. The price has swung between them and both have held the price. This means that another reversal at either level could be a significant double top or double bottom formation that will dictate the probable direction of the next meaningful price movement. There is a long-term bearish trend, but I have no longer hold a convinced bearish bias. There is much volatility with the price moving by about 1% every day on average over recent days, and these are the largest movements in the Forex market at the current time, so this can be an attractive pair to trade. There has been a great deal of focus on the NZD, but this may start to cool down as the novelty of the new Government in New Zealand wears off.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 12:30pm London time.