Yesterday’s signals may have given a losing long trade entry at 0.6859.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time and 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 0.6857.
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 0.6795.
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 yesterday that I had a short-term bearish bias above 0.6859. If the price succeeded in breaking below the remaining support level at 0.6859, that would be a very bearish sign and suggest that the price would be likely to go on and make new long-term low prices in line with the long-term bearish trend. This was a correct call, and its worth noting further that the NZD is acting weaker than the AUD. Although we have seen a consolidation of the price over recent hours, still lower prices look likely as we are making new 6-month lows, and therefore I have a bearish bias.
Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time, followed by Crude Oil Inventories data at 3:30pm. Concerning the NZD, the RBNZ will release its Rate Statement and Official Cash Rate at 10pm.