Last Thursday’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 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 0.7214, 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 wrote at the end of last week that I was lessening my bullish bias, as the recent higher volatility suggested this little trend was about to break down into something more chaotic. This has been an accurate approach to the action of the past few days, with the price still broadly moving higher but with slower and slower momentum, and a break of the medium, second supportive trend line. The price has been rising over the last few hours, but it looks increasingly as if we are going to move into a more ranging situation. I still keep a slightly bullish bias.
There is nothing important due today concerning either the NZD or the USD.