Yesterday’s signals were not triggered, as there was no bullish price action at 0.6993.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken between 8am New York time and 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 0.7053.
* 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 0.6945.
* 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 took a bearish bias yesterday, and I wrote that it was now becoming less likely that we would see a medium or long-term major bullish reversal around 0.6993. This has been confirmed by events and at the time of writing the price is trading below 0.6993. I keep a bearish bias and expect the price to now continue downwards to the next support level at 0.6945.
There is nothing due today concerning the NZD. Regarding the USD, the Chair of the Federal Reserve will be speaking at a conference at 8:15am London time.