NZDUSD: Bottoming out at 0.6615?
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6641 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.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6615 or 0.6590.
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 the bearish move had slowed down in recent hours, but the price still looked more bearish here than it did in AUD/USD. I expected the price would move down gently and slowly to touch 0.6615 which should be the day’s pivotal point. This was a good call as the price made a low for the day just 1 pip above the level at 0.6615 which I highlighted, gently bouncing up but now falling again to reach close to the 0.6615 support level.
The Australian Dollar now looks more bearish and is making new lows, while the NZD is not. This is a sign that it may not be wise to be looking to get short here in this currency pair.
I think the support level at 0.6615 will again be the pivotal point today. There may be more potential for a long trade from there following a firm bullish bounce and rejection of the level than a short, as there is a round number plus another support level at 0.6590 very close below that.
Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Regarding the NZD, there will be a release of ANZ business confidence data at 2am.