Yesterday’s signals were not triggered, as there was no bearish price action at 0.7262.
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 0.7374.
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 0.7187.
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 wrote yesterday that I had no directional bias and would prefer to stand aside on this currency pair. However, we have seen a bullish change to the technical picture, as the price has continued to rise, and finally broken up above the long-term bearish trend lines which can be seen in the price chart below. Unfortunately, despite the bullishness, there are no key levels anywhere nearby that can be used as obvious platforms for trade entries. Generally, I have a bullish bias on this pair today, as the line of least resistance certainly seems to be upwards.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm and Crude Oil Inventories at 3:30pm.