NZDUSD analysis: Bullish above 0.6636
Yesterday’s signals produced a profitable long trade following the doji candlestick which rejected the support level identified at 0.6636, although it only gave the minimum 20 pips or so of profit.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered 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 0.6636 or 0.6700.
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 0.6605.
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 recent price rise may be somewhat over-extended. Watch to see whether the price can remain above 0.6636 as the day goes on. If it did, that would be a very bullish sign. However, a bearish retracement to 0.6605 was quite possible, I thought.
The price did get above 0.6636 but was not able to remain there for very long. Technically, that area has now flipped to become a little zone of new lower resistance. This area around 0.6636 is almost certainly going to be today’s pivotal point.
I would still be more comfortable taking a long trade from a bullish bounce at 0.6605 than a short trade from a bearish bounce from 0.6636 – however, either may well be a good trade.
I have no directional bias today on this currency pair.
There is nothing important due today concerning either the NZD or the USD.