Yesterday’s signals were not triggered, as there was no bullish price action at 0.6532.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6530, 0.6569 or 0.6579.
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.
Remove 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 0.6497 or 0.6444.
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.
Remove 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 the price seemed to be consolidating within a ranging zone. I took no directional bias, thinking that a reversal at either support or resistance looked like it could be a reasonably good trading opportunity.
This approach at least kept me out of trouble as there were no such reversals. The picture now is more bearish and that is not a surprise as there is a more risk off atmosphere in the markets, which can be expected to drive the price down in currency pairs like this one when this sentiment comes in the market. I would be bearish after a good bearish reversal at 0.6530 or following a strong break below the nearby support level at 0.6497.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.