Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 0.6459.
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 Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6500.
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 Trade
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6347.
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 took a bearish bias yesterday. I was completely wrong over the short-term, as the price rose strongly and broke above what I had thought would be the pivotal level at 0.6459. In a way, I was right about that level over the short-term, as the bullish break did produce a reasonably good bullish directional movement, which then faltered heavily just below the big psychological level and key resistance level of 0.6500. Now, the price is sitting right on the 0.6450 level again, which could be expected to provide at least minor support. If the price falls cleanly from here, that would be a bearish sign suggesting an attempt at the multi-year lows below just above 0.6425. I would be bearish below 0.6440 if the price gets there quickly.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.