Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 0.6698.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time today.
Short Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6789.
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 Trades
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6689 or 0.6635.
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 last Thursday that the longer the support level just below at 0.6698 held, the greater the chance that there would 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. This was a correct call over the short term, as although the level did not hold precisely, it held broadly and rose by about 20 pips or so from that area. However, the price has really just been consolidating quietly above 0.6889. It still looks possible that we will see a stronger bullish movement the longer this supportive area holds. I think a bearish breakdown is more likely and would probably have more strength to it, so I would take a bearish bias later if the price can break below 0.6689 and trade lower than that for a couple of hours.
There is nothing of high importance due today concerning either the NZD or the USD.