NZDUSD: 0.6650 area looks pivotal
Yesterday’s signals were not triggered, as there was no bullish price action at either 0.6692 or 0.6675.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6692.
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
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6656 / 0.6650.
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 be ready to take a bullish bias if we got a strong bullish bounce at either 0.6692 or 0.6675. However, I also thought that if the broke strongly below 0.6675, it had a long way it could fall without meeting any support: all the way to the 0.6600 area. The second scenario played out but the strong fall to 0.6600 has not happened yet, and technically it looks increasingly obvious that the 0.6650 area will probably provide strong support: to be precise, the pivotal point is at 0.6656. So far, the level is holding, and we may see a major bullish reversal here, but a sharp break and fall is also possible. It is more likely to be supportive, so I would be prepared to take a bullish bias if the level holds into the New York session and we see a strong initial push up from a rejection of it.
There is nothing of high importance due today regarding either the NZD or the USD.