Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at 0.7273.
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 0.7246, 0.7275 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
Last Thursday I maintained a bearish bias. The price rose, breaking past the first support level, but was eventually held very near the second level before falling again. Interestingly, the two resistance levels have been adjusted slightly but have basically held, and the medium-term dominant bearish trend line continues to dominate the price chart shown below. Although the price has been rising over recent hours, there is every reason technically to maintain a medium-term bearish bias on this currency pair. There is no key support above 0.7110 so the price has lots of room to fall further.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.