Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 0.6640.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm Tokyo time, during the next 24-hour period only.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6622 or 0.6635.
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 0.6640 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 last Thursday that if the price returned to 0.6771 and clearly failed to rise, and then turned bearish, I would take a bearish bias at that point. The price never quite returned to that level, but the bearishness has continued, with support levels becoming invalidated and new obvious resistance levels being printed. It looks as if the resistance at 0.6622 is holding following a retest, so as long as this level holds, I will be bearish later during the Asian session. However, bears should be cautious of the bullish “V” which formed a few hours ago confluent with the round number at 0.6600.
There is nothing important due today concerning either the NZD or the USD. It is a public holiday today in the U.S.A