Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trades
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6622 or 0.6635.
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 0.6562 or 0.6541.
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 noted yesterday that we had a medium term over-and-under pattern formation basing at the clear support level of 0.6541 which suggested the price will find it difficult to fall in the near term. However, we also had key lower swing highs and a convincing bearish trend line just below 0.6600, so I took no directional bias yesterday.
The bulls won, forcing the price higher and producing a more clearly bullish picture, with a break of the bearish trend line and a new higher support level forming at 0.6562. There is also a higher support level above that, but the price is remaining so close to it that I do not give it for a signal today.
I would be bullish if the price can remain above 0.6589 as the New York session gets underway, but I would not be bearish on this pair today under any circumstances.
There is nothing important due today concerning either the NZD or the USD.