Yesterday’s signals were not triggered, as there was no bullish price action when the price reached 0.6822 or 0.6770.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6822 or 0.6857.
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 Trades
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6787 or 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
I wrote last Thursday that I had a weakly bullish directional bias today again above 0.6822. I was wrong in the movement that I expected, although fortunately by the time the session began, the price was already below 0.6822, where it continued to fall bearishly into Friday. This pair is behaving more reliably that its sister AUD/USD. The resistance at 0.6822 looks likely to be strong, but so does the support at 0.6787. I think rejections of this range can be traded today in either direction. A break above 0.6822 would be a bullish sign, while a break below 0.6787 would be a bearish sign. I have no directional bias if the price remains within this range.
There is nothing important due today concerning either the NZD or the USD.