Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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 entry 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 Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6925, 0.6908 or 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
I wrote yesterday that pace of the rise was likely to slow, but there is room for a further advance to at least 0.7000, although I had no firm directional bias. The price did continue to rise and in the process printed a new higher support level at 0.6925. The price waves and overall structure is clearly bullish, but the FOMC releases due later might push the price anywhere. Until then, the support level at 0.6925 is likely to hold.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of CPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm, and FOMC economic projections, Statement, and the Federal Funds Rate at 7pm. Finally, the FOMC Press Conference will begin half an hour later.