Yesterday’s signals were not triggered, as none of the key price levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%
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 0.7196, 0.7242 or 0.7261.
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 had a bearish bias yesterday, which worked out well as the price has continued to fall over the past 24 hours. There is no reason to change that, as we are still a considerable distance away from the nearest resistance level at 0.7110, and every factor points to still lower prices on the way soon. The price chart below shows a clear pattern of lower lows and lower highs over recent days. There is also a new lower resistance level established at 0.7196, very confluent with the round number at 0.7200, which could provide an interesting short trade opportunity after a bullish pull-back. Another encouraging factor for bears is that the NZD is a little weaker than the AUD, with which it is closely correlated, suggesting this pair is a good bet to benefit from any USD strength generally.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories at 2:30pm London time, followed by the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm, followed later by the usual press conference.