Last Thursday’s signals were not triggered, as there was no bearish price action at 0.7240.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered 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 0.7344.
Put the stop loss 1 pip above the local swing high.
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 0.7265, 0.7214, or 0.7188.
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 wrong last Thursday in worrying that the 0.7250 area would halt the rise, at least for a while: the price has just continued to power upwards. Looking at the price chart below, bullish momentum has continued to increase, with a series of steeping trend lines holding the price up, and new clear, higher support levels have been formed. Everything points to still higher prices, and there is nothing obvious below 0.7344 to stop the advance. I have a bullish bias and see and possible long trade set-ups from retracements to the new support levels as likely to be good trade opportunities over the short-term.
There is nothing important due today concerning either the NZD or the USD. It is a public holiday in the U.S.A. today.