Yesterday’s signals were not triggered, as there was no bearish price action at 0.6681.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may be taken from 8am New York time to 5pm Tokyo time, during the next 24-hour period only.
Short Trade
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 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 0.6681.
- 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 the best approach was likely to be to trade strong rejections of key levels. I was wrong, the price has continued to rise and break above the triangle’s upper trend line, more strongly than what occurred in the highly positively correlated AUD/USD currency pair, which is a bullish sign. Another bullish sign was the use of the former resistance at 0.6681 as new, higher support.
I take a mildly bullish bias on this pair today between 0.6681 and 0.6720.
There is nothing important due today concerning either the NZD or the USD.