Yesterday’s signals were not triggered.
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 0.6569 or 0.6622.
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 0.6544 or 0.6500.
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 I would be bearish later if the price could get established below 0.6544, or if it pulled back to 0.6568 and turned bearish again. Yet I was cautious of expecting a further fall beyond 0.6500.
This wasn’t a bad call, as the level at 0.6544 did turn out to be pivotal so far, with the price being unable to get established below it. We have had some consolidation over the past few hours and the price is now threatening to make a deeper bullish retracement.
There is no question that the wider outlook is generally bearish, with both the NZD and the AUD on the brink of breaking into new multi-year lows. However, the Australian Dollar’s price action is looking relatively more bearish. I still would prefer short to long trades and would take a bullish bias if the price strongly rejects an attempt to rise above 0.6568.
There is nothing important due today concerning either the NZD or the USD.