Yesterday’s signals produced a short trade from the pin candlestick rejecting the resistance level at 0.7053. The trade did not quite reach the minimum 20 pips of profit and should probably be closed out as the price looks increasingly likely to break out above 0.7053.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7106.
Place 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 0.7000 or 0.6956.
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 yesterday that the picture was bullish overall, but the short-term movement now looked difficult to predict. The only forecast I felt comfortable making was that a break above the trend line shown in the price chart below just above 0.7053 would be a bullish sign. This was a pretty good analysis as such a break was not made, and the price has continued to refuse to rise any further, although it looks more likely that it ultimately will. The U.S. Dollar continues to weaken slightly over another day, while currencies such as the Australian and New Zealand Dollars continue to advance, so if the bullish break comes, it looks likely that the price will continue to rise and reach at least 0.7100. Again, I have a bullish bias today above that trend line.
There is nothing due today concerning either the NZD or the USD.