Last Thursday’s signals were not triggered, as there was no bullish price action at 0.7326.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.
Short Trade
Short trade entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7460.
Place the stop loss 1 pip above the local swing high.
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 Trade
Long trade entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7216.
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
Towards the end of last week, I was keeping a bullish bias. While the price did hold up for a while after the earlier sharp fall, it never truly recovered, and has continued to make lower lows and lower highs. Additional bearish signs have come in the breaking down of the nearest support level, which has now been invalidated, and at least one of the supportive trend lines. The price is now in an uncertain phase, caught within a consolidating triangle, as shown by the trend lines drawn in the price chart below. We are a long way from any key level beyond the trend lines, so it seems like it will be hard to identify any good trading opportunity in this currency pair today. I have no directional bias now.
There is nothing important due today concerning either the NZD or the USD.