Yesterday’s signals were not triggered as there was no bearish price action at 0.6720.”
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 I would be bullish today if the price got above 0.6680, and tomorrow if the price at the end of the New York session closes above 0.6622. This was a great call, as the price has continued to rise strongly and make new multi-week high prices. I remain bullish, but I note that the price has encountered some resistance close to 0.6787, so I would want to see the price above that level before taking a definite bullish bias. The AUD and the NZD are the most bullish currencies now and have been boosted by strong New Zealand employment data released earlier, and general U.S. Dollar weakness. The RBNZ makes its monthly report later, so watch out for volatility and possible strange price movement at that time.
There is nothing important due today concerning the USD. Regarding the NZD, there will be a release of the Reserve Bank of New Zealand’s Monetary Policy Statement, Rate Statement, and Official Cash Rate at 8pm London time, followed by the usual press conference one hour later.