Yesterday’s signals were not triggered, as the bearish price action took place above the anticipated resistance level at 0.6938.
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 0.6954.
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
The price rose to break the resistance level, but turned at a previous bullish inflection point a little higher, at 0.6954. Despite the bearish turn, the picture is looking more bullish as the price now seems to be established within a bullish channel, although the boundaries look a little messy, so it is likely to not be very reliable. However, we have a meaningful higher low at 0.6880, which suggests that the price may now be more likely to start to move higher than lower. This could be very significant for long-term position traders, as the price is close to a multi-month low, so a move up starting here for hundreds of pips is something to consider as a possibility.
There is nothing important due today concerning either the NZD or the USD.