Last Thursday’s signals were not triggered, as the bullish price action later that day took place just below the support level identified at 0.6871.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Short Trade
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7000.
- 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 0.6867, 0.6856, or 0.6829.
- 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 Thursday that although the price had spent several hours above 0.6900, it looked very much as if the price was reversing bearishly to get established back below that level. If the price got back up again that day to close near the Asian session’s highs, that would be a sign that higher prices were likely going forward. This was a good call, as the price closed well below 0.6900 and that was the end (at least over the short-term) of any significant bullish move. However, it is notable that the NZD is strong over the long-term and has reached new 50-day highs against the USD. The price has been held up by an area of support which starts or 0.6867. If the price can get established for a couple of hours above 0.6900, I would be taking a bullish bias. A break below 0.6829 would be a very bearish sign.
There is nothing of high importance due today concerning either the NZD or the USD.