Last Monday’s signals were not triggered, as there was no bearish price action at 0.6748.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trades
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6774 or 0.6804.
- 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 0.6708.
- 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 Monday that the NZD was the weakest of all the major currencies, and still looked bearish below 0.6750. I would take a bearish bias if we got a solid bearish rejection of the 0.6750 after the bullish retracement continues to push the price up there.
This was a good call as the price soon invalidated the level and continued to push up and invalidate the bearish price channel. So, despite the fact that the price is near long-term lows, the picture looks more bullish. The resistance at 0.6774 looks pivotal and likely to be tested later today. I would take a bearish bias if we got a strong bearish rejection there later today.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of CPI data at 12:30pm London time, and FOMC Meeting Minutes at 6pm.