NZDUSD: Ranging and choppy around 0.6700
Yesterday’s signals were not triggered, as there was no bearish price action at 0.6692.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm Tokyo time Friday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6693 or 0.6730.
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 I thought the area around 0.6692 would probably be today’s pivotal point, and if the price could get established later above 0.6700 it was likely to continue to rise. This was correct but the price only got another 20 pips higher before falling back strongly. As the AUD is selling off, this drags down the NZD. The picture now is certainly ranging and a little choppy, so the best approach would probably be to look for a reversal at the extremes: either 0.6656 or 0.6730. I take no directional bias on this currency pair, but along with the AUD, there is a lot of movement and action here so it may well be worth keeping an eye on.
There is nothing of high importance due today regarding the NZD or the USD. It is a public holiday in the U.S.A.