Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%
Trades must be entered from 8am New York time until 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 0.7374.
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 0.7304 or 0.7283.
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
Yesterday I took a bullish bias above 0.7280 and this worked out very well, with the price pulling back to that area and then continuing to advance to make new highs, while printing new support levels along the way. There is no reason not to keep being bullish, especially as this move is in line with the long-term bullish trend in this pair. It is true that there is a major resistance level not very far away at 0.7374, but it is worth being very careful before taking a short trade at any bearish reversal which might happen there.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.