Yesterday’s signals were not triggered, as there was no bearish price action at 0.6449.
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 0.6459 or 0.6500.
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 0.6347.
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 the nearest resistance level at 0.6449 was likely to be pivotal. I was wrong, and it now seems clear that the pivotal level is going to be 0.6459. The action looks quite bearish over the short-term, in line with the long-term bearish trend, and the price has quite a long way to fall before reaching the next support level, and the recent lows are 2.5-year lows. For these reasons, I have a bearish bias, especially if the price breaks the low close by.
There is nothing important due today concerning either the NZD or the USD.