Last Thursday’s signals were not triggered, as there was no bearish price action at 0.6689.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time until 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
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6677 or 0.6655.
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 price breaking up above 0.6635 which seemed to be acting as support was a fairly bullish sign. I thought that if the level did not hold it would suggest a consolidation. The level did break by a few pips, but the price quickly rose back above it as New York opened. So, this was a partially correct analysis but may have been hard to exploit.
Just as we have seen with the Australian Dollar, the New Zealand Dollar has risen strongly since its move down during the “flash crash”, although it originally fell by much less than the Australian Dollar did. It is very unusual to see such a strong recovery so quickly which exceeded original prices before the first move down, as it has done here. The bullish momentum is still present, more so than we see in the AUD/USD pair, so I take a bullish bias here as long as the price remains above 0.6725.
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There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.