Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
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 Trades
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6857 or 0.6888.
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 0.6834.
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 generally I would be more comfortable taking a long trade here than a short trade. This wasn’t wrong as the price has risen since then although the true origin of the move is in the AUD which is considerably stronger than the NZD. The rise is weak and gradual, and the action here does not fill me with confidence to trade this pair, it would probably be a better idea to trade AUD/USD instead. I have a weak bullish bias on this pair today.
There is nothing important due today regarding the NZD or the USD.