Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7242, 0.7273 or 0.7299.
· 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 0.7110.
· 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 wrote yesterday that the picture looked extremely bearish following a sustained breakdown below 0.7273. The price had a large amount of room to fall further, with the medium-term bearish trend looking to be strong and quite reliable. The price did in fact continue to fall before recovering a little, but at the time of writing it seems to be on its way down again. The path may not be smooth, but there is no reason not to see a further fall in the price over the short term. There is some key U.S. central bank input due later which could push the price around to unexpected places, however.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, as well as testimony from the Chair of the Federal Reserve before Congress.