NZDUSD analysis: NZD threatens bullish break above bearish price channel
Yesterday’s signals were not triggered as neither of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6592.
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
Go long immediately upon the next touch of 0.6497.
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 price had continued to fall and looked set to make a multi-month low close at the end of the day. There were no bullish technical factors at all and every reason to be bearish. I took a bearish bias on this currency pair yesterday.
Although the pair continued to descend over the course of the day, the price rose sharply at the end of the Asian session, and is now breaking above a relatively long-term bearish descending trend line, as shown in the price chart below, so this forecast did not work out so well if a hard stop loss level wasn’t used to implement it.
I would remain long-term bearish below 0.6592, but if the price can now get established above the round number at 0.6600 this would be a bullish sign.
I would take a bearish bias today if there is a strong bearish rejection of the 0.6592 resistance level later after New York opens.
There is nothing important due today concerning either the NZD or the USD.