Yesterday’s signals produced a profitable short trade following the bearish engulfing candlestick which rejected the resistance level identified at 0.6857.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Short trade entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6834 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 Trade
Long trade entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6750.
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 I had a weak bullish bias but would prefer not to trade the pair at all as the bullish action looked weak. I was correct, but eventually there was a nice opportunity to go short from the double top at 0.6857. The price has now broken below the former support and although the bearish momentum has slowed, unlike the AUD/USD currency pair, it looks as if the price has more room to fall. For that reason, I have a weakly bearish bias on this currency pair today.
There is nothing important due today regarding the NZD or the USD.