Last Wednesday’s signals were not triggered as none of the key levels were reached during the specified period.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time to 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 0.7187.
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 0.7134 or 0.7110.
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 last Wednesday that I felt that the coming days would see the price falling further, all the way down to the 0.7250 area, so I took a bearish bias. This has paid off as the pair is falling like a stone. Still lower prices are very likely today. The most interesting technical feature, which can be seen in the price chart below, is a long-term trend line currently sitting at about 0.7134 which is likely to give some amount of bullish bounce if reached, so it could be an interesting area to watch for scalpers. I maintain a bearish bias. The U.S. Dollar is strong and commodity currencies are getting hammered.
There is nothing due today concerning either the NZD or the USD.