Yesterday’s signals were not triggered, as there was insufficiently bearish price action when the price reached 0.6720.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, over the next 24-hour period only.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6720 or 0.6763.
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 Trades
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6681 or 0.6640.
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 yesterday that I took a mildly bullish bias on this pair between 0.6681 and 0.6720. This worked out great, with the price continuing to move up to the resistance at 0.6720 before exceeding it before falling back. We also see a continuing pattern of higher swing lows, which can be seen in the price chart below.
The technical picture is more bullish now, and the NZD continues to be more bullish than the AUD, which is another bullish sign. Despite the long-term bearish trend, the price is not ready to fall.
I would be bullish today above the new upper trend line which currently sits at about 0.6730.
There are key releases due for both currencies within this pair, so we may see quite a lot of action here over the coming hours starting at the New York open.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time followed by Crude Oil Inventories at 3:30pm. Concerning the NZD, there will be a release of ANZ Business Confidence data at 2am.