Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7035.
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.
Long Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6908 or 0.6870.
Put 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.
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
I noted yesterday there was room for the price to rise, although I had underestimated the influence that the appointment of a new Governor of the RBNZ would have upon the outlook for the Kiwi. The price action has established a new higher support level just above 0.6900. The pace of the rise is likely to slow, but there is room for a further advance to at least 0.7000. There is a long-term bearish trend, but for almost two months the price has been failing to fall further, so a bullish turn is supported more and more by technical factors. I have no directional bias.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.