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 entered from 8am New York time until 5pm Tokyo time today only.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 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 Trades
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6795 or 0.6708.
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 we had seen a sell-off in this pair as risk sentiment deteriorated, but the chart suggested that this fitted as a normal pull back within a wider bullish movement, unlike the highly correlated AUD/USD currency pair where the bearish pull-back looked more significant. Therefore, I took a bullish bias on this pair as long as the price remained above the support level at 0.6794, which it did. This was partially successful, as the price did rise for a while, and the price is no lower than it was 24 hours ago. I am a little less bullish now, but I still prefer to be bullish than bearish. I would take a bullish bias if the price trades above yesterday’s high for more than an hour, or if it bounces firmly at the support level of 0.6795.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.