Last Thursday’s signals were not triggered, as there was no bearish price action when either of the key resistance levels were reached.
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
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6920 or 0.6960.
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 Trade
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6888 or 0.6859.
Put 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 if the price mostly remained below 0.6850, then I saw a move down to at least 0.6750 as likely over the near term. I was wrong, as the price only got about another 20 pips beyond that before turning quite bullish and flipping former resistance to new support as it rose. What is especially interesting is that the key levels have all held and flipped. This pair is now in a deep bullish pull back. There may be a good opportunity to go short if there is a strong bearish rejection at 0.6920, but if the price can get established above that, it would be a more strongly bullish sign. Apart from that assessment, I have no directional bias on this currency pair.
There is nothing important due today concerning either the NZD or the USD.