Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 0.6787.
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
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6763 or 0.6787.
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 Trade
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6675.
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 last Thursday that I was slightly bearish above 0.6750. This worked out well as the price continued to fall steadily throughout that day, even getting below 0.6750 before finally recovering. I have zoomed out on the price chart below to show that this pair has been a technical mess lately, just a lot of consolidation, very hard to trade. Moreover, the typically highly correlated AUD/USD pair looks more orderly right now, so it might be better to trade that instead of this pair. The price isn’t moving much now, but the technical picture does look a little bearish, with new key resistance at 0.6763, and no support for a long way below. A short trade from a reversal at 0.6763 looks like being the best opportunity which could set up in this pair.
There is nothing important due today concerning either the NZD or the USD.