Yesterday’s signals produced a nicely profitable long trade following the bullish near-doji candlestick which rejected the support level at 0.7000. It might be worth taking most of the profit.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trades
* Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7053 or 0.7106.
* 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
* Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7000 or 0.6956.
* 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 wrote yesterday that it would make sense to have more faith in 0.7000 as support than in 0.7020. I had a bullish bias above 0.7035. This worked out well, with the support at 0.7000 holding firmly and precisely as great support, producing a bullish move which continued up past 0.7035. However, the price has since reached a key resistance level at 0.7053 from which it has fallen a little. The picture is bullish overall, but the short-term movement now looks difficult to predict. The only forecast I feel comfortable making is that a break above the trend line shown in the price chart below just above 0.7053 would be a bullish sign.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.