NZDUSD: New bullish 3-month high price
Yesterday’s signals were not triggered as there was insufficiently bearish price action at 0.6730.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered from 8am New York time until 5pm Tokyo time today.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6747 or 0.6781.
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 Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6687 or 0.6656.
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 signs were all bullish, and that if we saw an extended move which got established above the key psychological level of 0.6750, that would be a very bullish sign and suggest a further rise was likely.
Although the price did rise further, it never reached the resistance at 0.6747, suggesting we are still in only a weakly bullish situation. It makes sense to keep looking to the bullish side, as the price made a new multi-month high, but we really need to see the price get established above the big psychological level of 0.6750 before any bullish move becomes strongly likely – I would take a bullish bias in that scenario.
There is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time, followed by minor speeches from the Chair of the Federal Reserve at 6pm and FOMC Member Evans at 8:30pm.