Yesterday’s signals produced a losing long trade from the bullish outside candle rejecting the support level at 0.7275.
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.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7307.
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 Trades
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7255 or 0.7246.
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 technical picture had changed significantly and become considerably more bullish. Despite that, the price actually slipped a little, invalidating the support level at 0.7275 which I had thought might provide a good long trade entry. However, the price has broadly held up, and all that is required in the chart is to lower the resistance level by some pips to 0.7255. We now have a zone of support centred on the psychological price level at 0.7250. Just like the AUD/USD currency pair, I see the situation here as evenly balanced between bulls and bears, so I have no directional bias.
There is nothing due today concerning either the NZD or the USD.