Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered from 8am New York time to 5pm Tokyo time, during 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 0.7343.
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 Trade
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7214.
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 uncertain directionally yesterday, noting that the price was caught in a consolidating triangle, quite evenly balanced between bulls and bears. The price fell, breaking below the first triangle, but then hit a very long-term supportive trend line from which it has recovered sharply during the previous few hours. Nevertheless, bears can be encouraged by the strong, short-term bearish trend lines shown in the chart below, which are confluent with a new resistance level at 0.7343. I still have no directional bias and continue to see the short-term outcome as very uncertain.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, and President Trump will be delivering a state of the union address at 2am. There is nothing important due today concerning the NZD.