Last Thursday’s signals were not triggered, as there was no bearish price action at 0.7075.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be entered 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 0.7108.
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 0.6993.
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 had a bearish bias. The price hasn’t really got any lower since then, but it hasn’t risen either. The action is flattening out, but the NZD seems more bearish than its highly correlated sister currency, the AUD. I see no true change to the technical picture, which suggests that support is felt the closer the price gets to the psychologically key 0.7000 area. It is interesting to note that the AUD is also close to a big psychological level at 0.7500, so if both AUD/USD and NZD/USD were to bounce bullishly at these levels at the same time, we could see a long-term bullish reversal in both currency pairs which might be interesting as a “fat tail” trade. I have no directional bias over the short-term now until 0.7000 is reached.
There is nothing due today concerning either the NZD or the USD.