NZDUSD: Another new 3-month high
Yesterday’s signals may have produced a short trade entry from the weak bearish rejection of 0.6747. This trade is still in play but looks a little dangerous so it might be wise to exit it by now.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Thursday to 5pm Tokyo time Friday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6747, 0.6781, or 0.6804.
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 Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6698 or 0.6687.
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 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.
As the price has held up over the past day, but the bullish breakout has still not happened, I again take exactly the same approach today and look for a bullish breakout to exceed 0.6750 on above-average volatility, in order to take a bullish bias on this currency pair.
There is nothing of high importance due today regarding either the NZD or the USD.