Yesterday’s signals were not triggered, as neither of the key levels were reached yet.
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 0.7106.
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 Trade
Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.6993.
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 run.
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 had no bias yesterday above 0.7000, and the price has not yet reached that level. The price has continued to fall, after the earlier flattening out. Both the NZD and the AUD look bearish, which is another bearish sign. 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. It looks as if the price will fall to reach at least 0.7000 soon.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time. Concerning the NZD, there will be releases of Employment Change and Unemployment Rate data at 11:45pm.