Last Thursday’s signals produced a losing long trade at the bullish rejection of the support level at 0.6750.
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 Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6811.
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 0.6675.
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 last Thursday that I had a clear bearish bias due to the price making new 6-month lows, and this was a good call as the price has now broken below the psychological level of 0.6750 to make a new 2-year low. The NZD is clearly weak and has been unable to recover after the RBNZ emphasized its continuation of a relatively accommodative monetary policy last week. There are no key support or resistance levels close to the current price, so it might be difficult to trade, unless there is a brief retrace to 0.6750 from which the price might sell off again. I maintain my bearish bias.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.