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 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 0.6720.
- 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 0.6635, 0.6579, or 0.6569.
- 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 although the picture was basically bullish, the best sign of whether there is still bullish momentum would be whether the price bounces at 0.6635 (which has already held as flipped resistance to support), or whether it easily gets to an area above 0.6700. I would take a bullish bias if either of these scenarios occur today. Neither of these scenarios played out but the price has continued to slowly rise, and bulls essentially now have the advantage. I will be bullish today if the price gets above 0.6680, and tomorrow if the price at the end of the New York session closes above 0.6622.
There is nothing important due today concerning the USD. Regarding the NZD, there will be a release of Employment Change and Unemployment Rate data at 9:45pm London time, followed by Inflation Expectations data at 2am.