Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6812.
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
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 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 yesterday that the picture here had become more bullish, and I was weakly bullish above 0.6812. This level broke down after holding weakly for a while, so it was a good call to see that as a pivotal level for the day. However, it was still wrong to be bullish. I was right in seeing 0.6787 as a key support level as it has held today to the pip and is showing initial signs of providing a bullish turn, so I would still say the picture looks a little bullish, albeit weakly so.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Manufacturing PMI at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.