Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time today only.
Short Trade
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6782.
- 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 0.6753.
- 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 it looked as if the price was likely to make higher prices today but watch out for the round number at 0.6800. It had plenty of room to rise before meeting any key resistance levels. This was a reasonably good call as the price did rise to reach 0.6800 before selling off and printing possible new resistance at 0.6782.
It is notable that the AUD is much more active and volatile than the NZD. I find that a good rule in trading these currencies is to trade only the one which is more the focus of attention, and right now that is not the NZD. The price action also looks quite uncertain, so I think there will be better opportunities in other currency pairs. I have no directional bias on this currency pair today.
There is nothing of high importance due today regarding either the USD or the NZD.