Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
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 only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6750.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.6836 or 0.6865.
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 that it looked as if the price was making a short-term bearish turn, and about to fall in line with the long-term bearish trend. The price did subsequently fall by approximately 30 pips before turning around and making a double bottom at 0.6790. However, this level at 0.6836 now looks established as resistance, even though the price is hinting that it needs to make a bullish retracement to a higher level. I maintain a bearish bias and think there could be another good short trade entry opportunity at either of the next key resistance levels. I am more optimistic about 0.6856 than 0.6835.
There is nothing important due today concerning the NZD. Regarding the USD, the Chair of the Federal Reserve Janet Yellen will be speaking at a panel discussion at 11pm London time.