Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6903 to trigger a long trade entry.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6853.
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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7035.
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 was worth taking a slightly bullish bias, and noted that the NZD is now looking stronger than the AUD. This turned out to be a good approach to this currency pair, as it continued to rise while AUD/USD sank. Although the former support level just above 0.6900 did not hold, there is clearly a higher, steeper trend line which has succeeded in keeping the price rising.
I have no longer-term directional bias on this currency pair, but I remain bullish over the short term, and note that the price has recently turned bullish at long time lows, meaning that we may now have made a long-term bottom.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, and later at 3pm the Chair of the Federal Reserve will be testifying before Congress. There will be a release of Crude Oil Inventories at 3:30pm. Concerning the NZD, there will be a release of ANZ Business Confidence data at Midnight.