Yesterday’s signals were not triggered, as none of the key levels were ever reached during the specified time.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time today.
Short Trades
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6899 or 0.6910.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6708.
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 I was a little less bullish now, but I still preferred to be bullish than bearish. I was ready to take a bullish bias if the price traded above the previous day’s high for more than an hour, or if it bounced firmly at the support level of 0.6795. Neither happened, and I was right to be cautious, as the price is moving down more strongly now and breaking below the former support level at 0.6795.
The picture now is even more bearish, and it looks as if we are going to see still lower prices. It is quite a long way to the next support level. The problem is that we are still in a recently congested area, so a clean downwards movement is unlikely to continue for very long. Markets are generally in flux, and I don’t see any clear opportunity as likely to come in this pair today.
There is nothing important due regarding either the USD or the NZD.