Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 0.6677.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.
Short Trades
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6700 or 0.6730.
- 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 0.6655.
- 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 a close below 0.6680 at the end of the day’s New York session would suggest that still lower prices would be reached over coming days. I was correct insofar as the price has moved 10 pips lower since then and is still (just) below 0.6680. We see the price a little reluctant to break to a new low below the recent spike down. Still, the picture is definitely bearish, and if the support at 0.6654 breaks down, we could see the pace of the decline speed up and provide an opportunity to make some short pips. I would take a bearish bias today if the price breaks below 0.6670 on above-average volatility during the New York session later today.
There is nothing of high importance due today concerning either the NZD or the USD.