Last Thursday’s signals were not triggered, as the bearish price action took place above the 0.6853 price level.
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
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6841.
· 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
· Go short following some bearish price action on the H1 time frame immediately upon the next touch of the bearish trend line currently sitting at about 0.6900. If the bearish rejection is also rejecting the 0.6900 level, this would be best.
· 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
I was correct in seeing the price fall last Thursday, but it found support at 0.6820 and then started to rise again. It has printed new, higher support at 0.6841, and has just made a double bottom there, which suggests the price will rise over the short-term and fill the weekend gap. If so, the trend line at 0.6900 starts to look interesting. Yet, the action all seems a little dubious and thin, so there will probably be better opportunities today in other Forex currency pairs. Beware as the major Australian news later could have a knock-on effect here on the NZD.
There is nothing due today concerning the USD. Regarding the NZD, the Governor of the RBNZ will be speaking at 12:15am London time.