Yesterday’s signals were not triggered, as none of the key levels were reached yet.
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.
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 Trades
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6765.
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 the situation now suggested consolidation and unpredictability as the price was far from any key levels, and the action suggested a double top may be forming close to 0.6888. I had no directional bias. This was a good call as the price has made a slightly bearish consolidation but with wide, tradable swings. I think the bears have a sight short-term advantage, and as AUD/USD looks even more bearish, we are probably likely to see more downside than upside today. Yet I think there will probably not be any good trades setting up here today.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.