NZDUSD: Bearish below 0.6641
Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 0.6656.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6641 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.
Long Trade Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6615 or 0.6590.
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 last Thursday that the technical signs were all bearish, the price was very close to its recent low, the price action was bearish, and the NZD was more bearish than the AUD. I was therefore ready to take a bearish bias if the price broke firmly to a new short-term low at 9am New York time. Happily, the price did exactly that, and then went on to fall by another 50 pips, so this was a very good call.
The bearish move has slowed down in recent hours, but the price still looks more bearish here than it does in AUD/USD. I expect the price will move down gently and slowly to touch 0.6615 which should be today’s pivotal point. If the price is below that at 9am New York time today I’d be cautiously bearish but would watch out for a bullish reversal at 0.6600 or 0.6590, so any trade should be carefully managed on shorter time frames.
There is nothing of high importance due today regarding either the NZD or the USD.