Yesterday’s signals were not triggered, as there was no bearish price action when the price reached 0.6953.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered between 8am New York time and 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 0.6880.
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 0.7035.
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
Although the price has continued to rise and invalidate a key resistance level, a clear bearish trend line can still be drawn connecting the minor swing highs within the upwards movement, suggesting that bulls should not get too excited yet: the price might well turn bearish right here and fall back to the supportive trend line. Having said that, I would still take a bullish bias, especially as the price is rising from a long-term low price, signifying a potential long-term buying opportunity. There is high volatility in this pair’s price movement, so if you can be active during the Asian session, it is a good pair to focus on during those hours.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.