Yesterday’s signals were not triggered, as the bullish price action at 0.6750 did not take place until after the close of the Asian session.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6788.
Put 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 entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6750.
Put 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
After a very strong rise, the price has made an almost equally strong fall, cutting through three support levels and only making the start of a convincingly bullish bounce at 0.6750, which seems to be a strong level. This could be the start of a bullish “over and under” pattern. I have no directional bias, as the technical situation seems very confusing and uncertain.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories at 3:30pm London time.