Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm Tokyo time, over 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 0.6765.
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 the bears had 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. This was a partially good call, as the price has fallen over the past day. The NZD has fallen more than the AUD, so it looks weaker. There are still wide, tradable swings, but no key levels below until 0.6765. The price action looks bearish, but I don’t take a bearish bias as we are so close to the support level at 0.6765.
There may also be minor resistance at 0.6812.
There is nothing important due today concerning either the NZD or the USD. It is a public holiday in the U.S.A. today.