Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trade
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6772.
- 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 Trades
- Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6698 or 0.6635.
- 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 last Thursday that the odds were still slightly in favour of a continued rise in price, but it would not be a surprise if did not see higher prices. I wanted to remain on the side-lines which wasn’t a bad call. Like the AUD/USD currency pair, we are seeing a bearish retracement as U.S. Dollar strength dominates the market, and the impact of positive economic data for the Kiwi fades away as time moves on. However, it is notable that the NZD has held up better than the AUD, so we may well see a good bullish bounce at the support level confluent with the round number at 0.6700. I would take a bullish bias today upon a strong rejection of 0.6698 from above.
There is nothing important due today concerning either the NZD or the USD. It is a public holiday today in the U.S.A.