Yesterday’s signals were not triggered, as none of the key levels were reached during the specified period.
Today’s NZD/USD Signals
Risk 0.75%
Trades may only be entered from 8am New York time to 5pm Tokyo time, over the next 24-hour period.
Short Trades
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6622 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 yesterday that it looked as if the resistance at 0.6622 was holding following a retest, so as long as this level held, I would be bearish later during the Asian session.
This was a good call, as the Asian session saw this pair fall heavily and reach a new 2.5-year low price.
It now seems as if the New Zealand Dollar is more bearish than the Australian Dollar, which is another bearish sign.
The price may now be finding support at 0.6544. Even if this level should break down, the big round number below at 0.6500 is likely to be supportive.
I will be bearish later if the price can get established below 0.6544, or if it pulls back to 0.6568 and turns bearish again. Yet I would be cautious of expecting a further fall beyond 0.6500.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.