NZDUSD: Slowly bearish below 0.6420
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 entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Idea
- Go short following bearish price action on the H1 time frame immediately upon the next touch of the bearish trend line shown in the price chart below which is currently sitting just above 0.6420, 0.6448, or 0.6475.
- Place 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 0.6347.
- Place 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 the New Zealand Dollar was more bearish than the Australian Dollar and one of the most bearish major currencies generally, which was a bearish sign. There were no key support levels under the current price until 0.6347 so the price has plenty of room to fall.
The situation as described yesterday is still exactly the same, with the price moving down very slowly from a descending trend line, albeit on very low volatility.
I am again ready to take a bearish bias if the price is below 0.6400 and making new hourly low closes at 9am or 10am New York time.
There is nothing of high importance due today concerning either the NZD or the USD.