Last Thursday’s signals produced an excellent and very profitable long trade entry from the bullish bounce at 0.6753. This looks likely to run at least a little further today.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered 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 run.
Long Trades
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6828 or 0.6802.
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 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 last Thursday that the price action here looked quite uncertain, so I thought there would be better opportunities in other currency pairs. I had no directional bias. That was a shame as the price took off with a very strong bullish directional move after rejecting the support level I had identified at 0.6753. The picture is still strongly bullish, and it looks as if we will see still higher prices over the course of today, so I take a bullish bias here above 0.6828 until the next resistance level at 0.6899. There is good bullish momentum here.
There is nothing of high importance due today regarding either the USD or the NZD.