Yesterday’s signals produced a losing long trade from the bullish pin candlestick which rejected the support level identified at 0.6530.
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.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 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.
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 the resistance levels above looked much more solid than the support, so I saw a bearish reversal at either 0.6569 or 0.6579 as the best potential trade setups here. Conversely, I was ready to be bullish if there had been a strong break above 0.6579.
In the end, 0.6569 was never reached, and although there was technically a long trade setup below that, I obviously wasn’t enthusiastic about it.
The price is again failing to touch the resistance level at 0.6569 and seems to be making a swing tun bearish again, so it looks most likely that the price will move down over the next few hours. If the price does test the resistance levels above and fail, turning bearish, I would be very interested in taking a bearish bias at that time.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.