Yesterday’s signals produced a profitable long trade from the bullish inside candlestick break following the rejection of the support level identified at 0.6828.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 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 ride.
Long Trades
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6826 or 0.6802.
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 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 yesterday that the picture remained strongly bullish, and it looked as if we would see still higher prices over the course of the day, so I took a bullish bias here above 0.6828 until the next resistance level at 0.6899.
This worked out indifferently overall as the price is now right back where it was 24 hours ago, but there was a nice bullish bounce giving a more precise and profitable long trade entry at 0.6828, so it was a good call.
The picture remains bullish, but if the price does not break above 0.6875 later today, a retracement to at least 0.6826 will look like a more likely scenario.
I take a bullish bias above 0.6875 until 0.6900 today.
There is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.