Yesterday’s signals were not triggered, as unfortunately the high of the day was 1 pip below the resistance level identified at 0.6888.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm Tokyo time, within the next 24-hour period.
Short Trade
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6888.
- 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
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6698.
- 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 this pair looked terrible to trade right now, despite the existence of a possible bearish channel. This was a good call as the Fed Chair’s speech sent the NZD strongly up against the USD. In fact, the NZD, along with the AUD, looks best placed to benefit from this new weakness in the USD, although the AUD seems strong. It looks as if the price is heading down now over the short-term, and there is no obvious support level close by, so I am not quite ready to take a bullish bias yet.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.