Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6622.
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 0.6541 or 0.6500.
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
The Australian and New Zealand Dollars have been the weakest of all major global currencies. Last week this pair reached a multi-year low before recovering to close slightly up over the week. This suggests that trading with a bearish bias is useful, but we have a medium term over-and-under pattern formation basing at the clear support level of 0.6541 which suggests the price will find it difficult to fall in the near term. However, we also have key lower swing highs and a convincing bearish trend line just below 0.6600. I have no bias on this currency pair as it looks evenly balanced right now between the bulls and the bears. The sister pair AUD/USD might be more interesting to trade.
There is nothing important due today concerning either the NZD or the USD.