NZDUSD: Bearish below 0.6700
Yesterday’s signals were not triggered, as there was no bullish price action at 0.6698.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.0.6703, 0.6713, or 0.6718.
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 0.6656.
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 if the price could not reach or exceed 0.6747, that would suggest that the bullishness may have ended, which breaks below any of the support levels would all be bearish signs. This was a good call as the price never even reached 0.6747 but did break support and fall more deeply.
The situation looks even more bearish now, as the price seems to be selling off again from the round number at 0.6700 and making new lows. The price has room to fall with no obvious clear support until 0.6656, so I will take a bearish bias on this pair today if the first hour of the New York session sees the price close at a new short-term low price.
There is nothing of high importance due today regarding either the NZD or the USD