Yesterday’s signals were not triggered as there was insufficiently bullish price action when the support level at 0.6546 was reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered before 5pm Tokyo time Wednesday.
Short Trade
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6592.
- Place the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trades
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6541, 0.6526, or 0.6514.
- Place the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 price was resting on what looked to be a pivotal point at 0.6546. This did not lead to anything as the level eventually broke down and was invalidated, but the price held up from the level at 0.6541 just a few pips away where the same support could be redrawn. The fact that the price has held up is a bullish sign, and I would take a bullish bias if the price were to retrace later to any of the three blue support levels shown within the price chart below and make a firm bullish bounce. Another bullish factor is that the price has plenty of room to rise as there is no key resistance until 0.6529, although the recent swing high at 0.6550 might be resistant enough to keep the price down, at least for a while.
There is nothing of high importance due today concerning the USD. Regarding the NZD, there will be a release of the RBNZ Financial Stability Report at 10pm London time, followed at Midnight by a press conference from the Governor of the RBNZ, then a release of ANZ Business Confidence data at 2am, followed 10 minutes later by testimony from the Governor before Parliament.