Yesterday’s signals were not triggered, as there was no bullish price action at either 0.6562 or 0.6541.
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
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6500 or 0.6541.
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 Trade
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6449.
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 yesterday that I would be bearish after a strong pullback followed by a clear bearish reversal close to the round number above at 0.6600. This didn’t happen: the price just started falling and kept falling, breaking below the lower trend line of the bearish price channel which is all shown within the price chart below. There is every reason to remain bearish on this pair today as the USD is still advancing very strongly here on the short-term time frames. This price is at a 2.5-year low and looks set to continue down having broken below the psychologically important 0.6500 level.
There is nothing important due today concerning either the NZD or the USD.