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 entered from 8am New York time until 5pm Tokyo time today.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6789.
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
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6698 or 0.6635.
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.
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 been very flat, we were likely to see more movement here later. I thought that direction was uncertain, but also that the support level just below at 0.6698 stood out as most likely to be strong technically and it is also confluent with the round number at 0.6700 so a long from a bounce there might be a good set-up.
This wasn’t a bad call as the level has clearly held the price up over recent hours, although it has not quite been reached. The longer it holds, the greater the chance that there will be a bullish reversal here, so a bullish turn in the Asian session would be likely to be more bullish than once which occurs soon near the start of the New York session.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.