Yesterday’s signals were not triggered, as there was no bullish price action when the price reached 0.6681.
Today’s NZD/USD Signals
Risk 0.75%.
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 0.6681 or 0.6720.
Place 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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6640 or 0.6612.
Place 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 I maintained a bullish bias above 0.6681. A sustained break below that level would suggest a deeper bearish pull back and the end of this little bull run we have seen over the past few days. This wasn’t a very good or helpful call, as although the price did remain above 0.6681 and rose slightly, it mostly traded sideways and finally ended up breaking below support, which now seems to have flipped to resistance. This presents a slightly more bearish picture, so I am now comfortable taking a bearish bias below 0.6681, at least until the price reaches the next support level at 0.6640.
There is nothing important due today concerning either the NZD or the USD.