NZDUSD: Ranging between 0.6600 and 0.6730
Yesterday’s signals were not triggered, as there was no bearish price action at 0.6656.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken prior to 5pm Tokyo time Wednesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6630 or 0.6652.
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 0.6605 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 yesterday that due to the ranging environment, we may now be seeing a strong bullish double bottom formed at 0.6600 and fading reversals at the extremes of 0.6605 and 0.6730 would probably continue to be the best approach toward this currency pair. This was a good call as it seems that after the downwards movement, we are now seeing some buying very close to the support level I identified at 0.6605. This is the bottom end of a recent range, also a possible triple bottom (we already have printed a bullish double bottom there), so there is a long-shot chance of at least a medium-term bullish reversal here. The longer the support at 0.6604 holds, the more bullish the outlook will become.
There is nothing of high importance due today regarding the NZD. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 1:45pm London time.