Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.7000.
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 0.6895, 0.6867, 0.6856, or 0.6829.
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 price had been held up by an area of support which started at 0.6867. If the price could 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.
This wasn’t a bad call as the price did get established above 0.6900 and although it is a little lower, the action is clearly bullish, and the price is advancing over the short-term at the time of writing. The price action is bullish basing off the new higher support level which has been formed at 0.6895. If the price continues to advance today, it is very likely to make a new 50-day high close, and that would be a bullish sign, so I would look for long trades here. There are no key resistance levels until 0.7000 so the price has room to rise.
Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time today. Concerning the NZD, the RBNZ will release its Rate Statement and Official Cash Rate at 1am.