Last Thursday’s signals were not triggered, as unfortunately the high was just a pip or so below the resistance level at 0.7035. If your broker’s price got you into this short trade, it was good for about 45 pips.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7035 or 0.7102.
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 or 0.6908.
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 was right to be bullish last Thursday, but wrong to expect a pull-back first to 0.6960. We now have a situation in this pair where after last week’s strongly bullish move, it may be due a downwards correction. The price has kept failing very close the resistance level at 0.7035, so a continued push down to the next support at 0.6925 would not be a major surprise. This would also be in line with the long-term trend.
There is nothing important due today concerning either the NZD or the USD.