Yesterday’s signals produced a profitable short trade following the large bearish outside candlestick which rejected the resistance level identified at 0.7374, giving a maximum of about 22 pips profit so far.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7374.
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 Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7273 or 0.7235.
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
Yesterday I was not confident enough to forecast any direction on this pair as it was giving very mixed bullish and bearish signals. It is notable that even though the U.S. Dollar has been strong everywhere over the past 24 hours, it looks less strong here against the New Zealand Dollar than it does against most other currencies, suggesting that if U.S. Dollar weakness were to end, there could be a good long trade opportunity here. However, the price is some way away from any key level and the short-term outlook remains very uncertain, so in the meantime I am still unable to take a bias on this pair. A long trade from a quick spike down to the nearest support level at 0.7273 might be a very attractive trade later when New Zealand Retail Sales data is released.
Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm London time. Concerning the NZD, there will be a release of Retail Sales data at 9:45pm.