Yesterday’s signals were not triggered, as none of the key levels identified were ever reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken from 8am New York time until 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 0.6883.
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 0.6954.
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 only thing that can be added to yesterday’s analysis, as there has been very little change, is that the nearest supportive trend line shown in the chart below has held – barely. This suggests that if the price breaks below that line soon, it should fall further to the nearest key support level at 0.6883. However, it appears to be slowly moving up now, and remains a possible high reward, high risk buy for long-term position traders, as the price is close to very long-term lows.
Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time. Concerning the NZD, there will be a release of the RBNZ Rate Statement at 8pm, followed by the usual press conference one hour later.