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 entered from 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 0.6514 or the descending trend line shown in the price chart below which is currently sitting at about 0.6537.
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 0.6444.
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 I would take a bearish bias if the price could trade below this week’s lows for a couple of hours consecutively. This was a good call as the scenario happened and the price moved further down. However, it is notable volatility is relatively low.
There is no reason to be bearish, every sign is bearish, the NZD is more bearish than the AUD, and the price seems set to continue to make new long-term lows. I take a bearish bias on this currency pair today.
There is nothing of high importance due today concerning either the NZD or the USD.