NZDUSD analysis: approaching psychological level at 0.6500
Yesterday’s signals were not triggered as unfortunately the high of the New York session was still a pip or so just below the nearest resistance level at 0.6546.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Tuesday until 5pm Tokyo time Tuesday.
Short Trades
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6546 or the descending trend line shown in the price chart below which is currently sitting at about 0.6555.
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 Trade
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6497.
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 despite the bullish bounce following the Australian election, technically, we did not yet have any reasons to take a bullish bias, but the picture would look more bullish if the price could get established above 0.6546, which may happen. I was ready to take a bearish bias later if the price keeps failing to rise higher at 0.6546 and then made a firm bearish move from that level after New York opens.
I had the right idea, but the idea was just a little bit too short. The NZD is now looking more bearish than the AUD and the price has already fallen to new 6-month lows. The only reason not to be bearish now is the proximity of 0.6500 just below the current price, which is an important round number and psychological level. The price may find support here.
I would take a bearish bias later if the price can trade below 0.6497 for a couple of hours consecutively.
There is nothing important due today concerning the USD. Regarding the NZD, there will be a release of Retail Sales data at 11:45pm London time.