Last Thursday’s signals produced a profitable short trade from the bearish pin candle rejecting the resistance level specified at 0.6938. It would probably be wise to take at least partial profits now, if this was not done already.
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 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6806.
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
Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.6938.
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 weakness in the NZD has persisted sufficiently to start another leg down as the resistance level at 0.6938 turned out to be just too strong to be broken. The price is now making a bullish bounce at 0.6883, but it is hard to see yet whether that is going to grow into a major movement. I would prefer not to look for a long trade here, but instead to maintain a bearish bias and hope that the price will continue down to the next support level at 0.6806.
There is nothing due today concerning either the NZD or the USD.