Yesterday’s signals were not triggered, as the support level at 0.6853 was cleanly broken by the price action.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6750.
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
Short entry following some bearish price action on the H1 time frame immediately upon the next touch of 0.6853.
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 NZD was looking strong yesterday, but has been pulled down sharply by very poor business confidence data. The price cleanly broke and flipped former support at 0.6853 and is still heading down. It looks set to continue to fall over the short term, as the U.S. Dollar is relatively strong today, and there are no obvious support levels before the important psychological level at 0.6750, except for the trend line shown in the chart below.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.