Last Thursday’s signals produced a nicely profitable long trade following the bullish engulfing candle signalling an entry upon rejecting the support level identified at 0.7246.
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 Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7374.
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 Trades
Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.7307 or 0.7246.
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 last Thursday that the situation seemed evenly balanced between bulls and bears, but I pointed out there was a zone of support centred on the psychological price level at 0.7250. This supportive area provided a good floor for the price, which rose strongly after completing a bullish “Quasimodo” / over and under compound candlestick formation at the pivotal area. Further bullish signs have been a new supportive trend line connecting the recent lows, and the break of the former resistance level of 0.7307 which now seems to be turning into support. I am taking a bullish bias on this pair today, especially if the price remains above 0.7307.
There is nothing due today concerning either the NZD or the USD.