Yesterday’s signals were not triggered as the bearish price action took place slightly above 0.6956.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6996.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6938 or the broken trend line a little below that level.
Place 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 a cautiously bearish bias below 0.6956. The price rose quickly to that area and only pulled back a little before advancing further, so I was basically wrong. The picture looks much more bullish now, having broken above that resistance and the long-term bearish trend line as well. If the new support and trend line hold after a retest, a long trade entry could be very interesting, and the situation would become more bullish despite the long-term bearish trend. I have no directional bias right now.
There is nothing due today concerning either the NZD or the USD.