Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trades
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6781, 0.6899, or 0.6910.
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 0.6698.
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.
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 as the price had just gone sideways over the past 24 hours, so there was nothing to change my analysis yesterday or to give me any new key levels to work with.
I was prepared to take a bearish bias later if we had gotten a strongly bearish rejection from an attempt to break up above 0.6900. This never happened.
The picture now looks more bearish as we have not only had quite a strong downwards move, but the NZD and AUD were the weakest of all major global currencies during this move, even weaker than the generally weak USD, which is notable. This gives me the confidence to be prepared to take a bearish bias if the price retraces to hit the new lower resistance level at 0.6781 and rejects it with a clear bearish reversal.
There is nothing important due today concerning either the NZD or the USD.