Last Thursday’s signals were not triggered, as there was no bullish price action at 0.6532 or 0.6497.
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 0.6569 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.
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
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6530 or 0.6497.
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 last Thursday that the price was now consolidating within a ranging zone. I took no directional bias, but I thought that a reversal at either support or resistance looked like it could be a reasonably good trading opportunity. As it happened, there were no such reversals, as none of the levels which were reached held.
The price has been moving up over recent hours, but the technical picture looks unconvincing. The resistance levels above look much more solid than the support, so I see a bearish reversal at either 0.6569 or 0.6579 as the best potential trade setups here – I would be bearish if either of these reversals occur, but not before that. Conversely, I would be bullish if there were to be a strong break above 0.6579.
There is nothing important due today concerning either the NZD or the USD.