Yesterday’s signals produced a losing long trade from the bullish bounce at 0.6826.
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 0.6802 or 0.6753.
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 yesterday that the picture remained bullish, but if the price did not break above 0.6875 later today, a retracement to at least 0.6826 would look like a more likely scenario. This is what happened, so it was a pretty good call.
That support level was invalidated after initially giving a very small bounce, and the action is looking less bullish as we now have a succession of lower highs (shown in the price chart below), although the price has yet to fall significantly. This means the outlook is very uncertain. We will probably get more clarity after the FOMC release due later, so it is probably best to stand aside for the time being. I still see a long trade from a strong bullish reversal at 0.6802 as a good potential trade.
There is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of the FOMC Statement and Federal Funds Rate at 7pm London time, followed by the FOMC Press Conference half an hour later.