Yesterday’s signals were not triggered, as there was no bullish price action at the anticipated support level of 0.7134.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7187.
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 0.7075.
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
I was right yesterday in expecting that the price would fall further, but wrong in thinking that the trend line (shown in the price chart below) would produce some bullish reaction when it was reached – even on a 5-minute chart, the price did not even notice it. The price instead continued straight down to the support level at 0.7109 where it bounced, but only after the end of the Asian session. There is still heavy bearish momentum, so I would be nervous about taking a long trade soon, but the closer we get to the key psychological round number of 0.7000, the more attractive a long-term long trade entry will look. I have no bias on this pair today.
Regarding the USD, there will be a release of CB Consumer Confidence at 3pm London time. It is a public holiday in New Zealand.