Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken before 5pm Tokyo time, during the next 24-hour period.
Short Trade
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6888.
- 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 short following bullish price action on the H1 time frame immediately upon the next touch of 0.6698.
- 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 I had no directional bias and would avoid trading this currency pair today. This was an OK call. There is little reason to change this analysis, although you could argue that there is a bearish price channel (which I have drawn in the chart below), but it looks very shaky and I have no confidence in it. It is probably best to avoid trading this pair today.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.
Concerning the NZD, there will be a release of ANZ Business Confidence data at 12:00am.