Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered from 8am New York time to 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 0.7240.
· 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 0.7110 or 0.7075.
· 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.
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 yesterday to be bullish on this pair, as it continues to show upwards movement over recent hours and threaten to take out the recent highs soon. The NZD is clearly more bullish than the AUD which is significant. The price did not pull back to reach a key level or even the trend line before taking off again: instead it made a double bottom at about 0.7140. I maintain my bullish bias and right now it looks as if the price is heading for 0.7240. There is no reason not to be bullish over the coming hours between the supportive trend line and that next resistance level. Beware if you are trading this pair at the start of the next Asian session, as there is a key Australian data release which could also strongly influence the NZD if there is any major surprise.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.