Yesterday’s signals produced a long trade from the bullish inside candlestick on the hourly chart which rejected the support level at 0.6790. Unfortunately, I think this trade looks unlikely to end well so it may be wise to close it even though it is currently at a floating loss.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6853.
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 Trade
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6771.
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 that it looked as if the price would drift down to touch the nearest support level at 0.6970. As there is another support level just below it, there could be a major bullish reversal here, but I took no directional bias on this pair today. This was a good call as the price did reach 0.6790, and the small bullish bounce there has been very unconvincing. This leaves a mixed picture, but I would be more inclined to be bullish if the price rises from the lower support level of 0.6771 to break the trend line and get established above 0.6825.
There is nothing of high importance due today concerning either the NZD or the USD.