Yesterday’s signals were not triggered as none of the levels were reached yesterday.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6804 or 0.6856.
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 yesterday that the day’s pivotal level was likely to be 0.6804. I was prepared to take a cautious bearish bias if there were a strong bearish reversal here, partly because it was confluent with the round number at 0.6800, and partly because the price here returns to the area where it was trading when the RBNZ announced a more dovish approach to monetary policy might be ahead.
Although that level was never hit, I was right to see it as pivotal, as it held the price down.
The picture now is decidedly more bearish as it has now become obvious the price is trading within a symmetrical bearish price channel, with both the upper and lower trend lines having had two touches, with the third likely to be significant. The price action has made a bearish turn from the top of that channel, with the price now being held up by the old support at 0.6774. It looks likely to break down, and if it does, we would then be likely to see a sharp fall which could give some short pips – I would take a bearish bias today if such a breakdown happened.
There is nothing of high importance due today concerning either the NZD or the USD.