Last Thursday’s signals were not triggered as 0.6871 was never reached that day.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Short trade following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7035.
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.
Long Trade
Long trade following some bullish price action on the H1 time frame immediately upon the next touch of 0.6870.
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.
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 resistance level I identified last week at 0.6870 held when it was tested at the end of the week, but the announcement of the new Governor of the RBNZ has sent the Kiwi shooting up in recent hours, breaking an obvious bearish trend line, and making 0.6870 look like obvious support. There is still a long way before the next key resistance level could be reached, as it sits at 0.7035, and the price is almost as far from the next obvious psychological level at 0.7000. This means there is room to rise further, however fundamental factors remain likely to push this pair down over the longer-term.
There is nothing important due today concerning either the NZD or the USD.