Yesterday’s signals produced a short trade following the bearish engulfing candlestick which rejected the resistance level which was identified at 0.6996, but it only gave the minimum 20 pips of profit before being stopped out at break even.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time to 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 0.7053.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6970 or the broken descending trend line shown in the price chart below which is currently sitting at about 0.6950.
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 wrote yesterday that I had a bullish bias until the trend line was reached. This worked fine as there was a strongly bullish move that just kept on going, and the strong bullish breakout beyond that trend line was another bullish sign. The new “risk-on” sentiment / environment has driven this pair up strongly, with the NZD typically benefiting greatly as a commodity currency from such a sentiment in the market. The price was initially held just below the psychologically important 0.7000 level and seems to possibly be faltering there again. It might hold, it is an important level. If it is broken convincingly later after New York opens, I would have a bullish bias until 0.7053.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm London time.