Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.7343.
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 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 entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7372.
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
I had no directional bias yesterday, noting that forces were acting upon the price in both directions, causing a consolidation pattern to form within a triangle which was ambiguous on its upper side. The price broke above the lower trend line, which then began to act as support, before breaking up above the higher bearish trend line and taking off convincingly. It now looks as if a new higher support level has been printed at 0.7372. This has made the technical picture look more bullish, so I take a bullish bias today.
If the price does go on to make new highs, as looks likely, it will begin to a reach a psychologically important area of resistance at and above 0.7460, due to the influence of the psychological round number nearby at 0.7500.
Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm. There is nothing important due regarding the NZD.