Yesterday’s signals were not triggered, as there was no bearish price action at 0.6795.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6785, 0.6810, or 0.6857.
Place 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 0.6750 or 0.6675.
Place 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 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. This was a good call, as the price has continued to fall, and is still making new 2-year low prices, which is a bearish sign. Another bearish sign is that the NZD is considerably weaker than the AUD against which it is typically benchmarked. I see still lower prices as very likely so this is a pair it should be worthwhile being strongly bearish on today, at least until the U.S. GDP release which could move sentiment in the opposite direction, at least for a while.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Final GDP data at 1:30pm London time.