Last Thursday’s signals were not triggered, as no key levels were reached that day.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 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 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 last Thursday that the price action looked bearish, but I didn’t take a bearish bias as we were so close to the support level at 0.6765. This was an OK call.
The picture now looks even more bearish, with a clear medium-term bearish price channel standing out in the chart below. There may be minor resistance at 0.6820. If the price fails at the trend line later and turns bearish, I would take a bearish bias; but if it trades above it for a couple of hours, I would take a bullish bias. A bullish move would probably have more potential than a bearish one.
There is nothing important due today concerning either the NZD or the USD.