Yesterday’s signals produced a losing long trade following a bullish engulfing candle which rejected the support level identified at 0.7235.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7242, 0.7273 or 0.7299.
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 0.7110.
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 yesterday that the situation still looked bearish, and that a sustained break below 0.7273 would be a bearish sign. We have now had this break, and the picture looks extremely bearish. The price has a large amount of room to fall further, with no key support levels for approximately another 100 pips below the current price. Although there is no long-term trend, the medium-term bearish trend looks to be strong and quite reliable.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.