Yesterday’s signals were not triggered as there was insufficiently bullish price action at all the support levels which were reached.
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 0.7246.
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 0.7187.
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 support levels nearby looked attractive and were likely to give bullish trade entries at bounces. I was wrong, in fact the price fell sharply and cut through several support levels. The technical picture has become more bearish, with steepening trend lines and a bearish confluence at around 0.7250 with a trend line, resistance and a key psychological level seeming very attractive for a short trade. However, the price has bottomed just a pip or two above the support level at 0.7187 which seems to be having an effect, so the most likely short-term move now looks like a bullish pull-back. I would be more comfortable entering a short trade than a long trade in this currency pair.
There is nothing due today concerning the USD. It is a public holiday in New Zealand.