NZDUSD: Bullish breakout failure
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time and 5pm Tokyo time today.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6747 or 0.6781.
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 Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6687 or 0.6656.
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 although this pair was only in a weakly bullish situation, it made 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.
This was a good call, as the price is holding up (more bullishly than the AUD/USD currency pair is doing), but the price is still failing to reach the resistance 0.6747.
I would still look towards the bullish side and keep an eye out for a strong bullish break above 0.6750 which could signify a major long-term bullish move. I would take a bullish bias on this currency pair in that scenario.
There is nothing of high importance due today regarding either the NZD or the USD.