Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.7265.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7287 or 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 0.7214, 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
Yesterday I had a bullish bias, but it did not work out, as the U.S. Dollar made a surprisingly strong showing, even against a generally strong NZD. The price action printed fresh, lower resistance at 0.7287, before close to the second supportive trend line at which the price then turned around strongly as London opened, moving up with some momentum. I still have a bullish bias in line with the medium-term trend, but the bullish case looks weaker. I would not be surprised to see the price consolidate for a while now, with the resistance at 0.7287 capping the price.
There is nothing important due today concerning either the NZD or the USD.