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 entered from 8am New York time until 5pm Tokyo time, over 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 0.6579.
- 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.
- Move 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
- Go long following bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.6532 or 0.6497.
- 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.
- Move 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 the I had no directional bias on this pair today, and I thought that the best potential opportunity is likely to come at a failure to break above the resistance at 0.6579. If this level was tested and held, it was likely to be a bearish sign.
As it happened none of the key levels were ever reached, and the price chart below shows the price is now consolidating within a ranging zone. I have no directional bias, but a reversal at either support or resistance looks like it could be a reasonably good trading opportunity.
There is nothing important due today concerning either the NZD or the USD.