Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be entered from 8am New York time until 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 0.7053.
* 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 Trades
* Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6945.
* 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 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
Yesterday I maintained a bearish bias and expected the price to now continue downwards to the next support level at 0.6945. I was broadly right, although the price bounced bullishly at the half number just 5 pips above the level at 0.6950. It now looks as if the price is likely to take at least a few hours to turn bearish again, but the general bias should be bearish. There are no clear resistance levels nearby, but it is quite likely that if the price continues upwards it will fail somewhere between 0.6980 and 0.7000. The major New Zealand data due later could push the price anywhere if it contains any surprises.
Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Concerning the NZD, there will be a release of the Official Cash Rate, RBNZ Monetary Policy Statement and Rate Statement at 10pm, followed an hour later by the usual press conference.