Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 0.7000 or 0.6956.
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 Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6960 or 0.7000.
Put 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 0.6903.
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 last Thursday that due to the double bottom at 0.7000 I had a weakly bullish bias, which would become stronger if the price can break above the resistance level at 0.7053. The resistance level at 0.7053 was not broken, and the NZD was subsequently dragged down strongly by the sharp fall in the AUD. What is now most noticeable about this pair is that it is not one of the most strongly trending pairs. The AUD/USD just made new lows, while the NZD/USD didn’t. This is a sign that this pair may not be the best one to use to trade any USD strength today. However, the new flipped resistance at 0.7000 looks like a very attractive level at which to take a short trade. I have no directional bias today, but I would start to become bullish if the price convincingly broke above 0.7000.
There is nothing important due today concerning either the NZD or the USD.