Yesterday’s signals were not triggered, as there was no bearish price action at 0.6569.
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 Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6622, 0.6635, or 0.6671.
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 0.6568 or 0.6544.
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
I wrote yesterday that I would prefer short to long trades and would take a bearish bias if the price strongly rejects an attempt to rise above 0.6568. That did not happen, but the 0.6568 was pivotal and the price rose above it and has continued to rise. The New Zealand Dollar is looking more bullish than the Australian Dollar, which is another bullish sign. We see the price firming up above the supportive area of 0.6568. This means despite the long-term bearish trend, it may be the start of a major long-term bullish reversal, yet the odds are against that. I have no directional bias on this pair today and would be looking for a strong bearish reversal at 0.6622 for a short trade entry.
Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, and Crude Oil Inventories at 4pm. Concerning the NZD, the Governor of the RBNZ will be making a minor speech at 10:30pm.