Yesterday’s signals were not triggered, as there was no bullish price action at any of the several support levels which were reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6829, 0.6856, or 0.6867.
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 0.6789 or 0.6765.
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 yesterday the price action was bullish basing off the new higher support level which has been formed at 0.6895. I was looking for long trades as the price has room to rise to new long-term highs. However, the picture was completely turned around by the RBNZ signalling that it may be prepared to cut rates in the foreseeable future, which caused a very strong and fast drop. The drop seems to be over and it is quite possible that the pair will make more gains over the next 24 hours and rise from these lows, but it is also quite possible that 0.6829 will hold as new support flipped to resistance. I would take a bearish bias if there were a strong bearish rejection there later today.
Concerning the NZD, there will be a release of ANZ Business Confidence data at Midnight London time. There is nothing of high importance regarding the USD.