NZDUSD: Psychological level at 0.6500 not far below
Yesterday’s signals were not triggered as there was no bullish price action at either 0.6590 or 0.6558.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6590 or 0.6619.
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 Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6515.
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 I’d adjusted the pivotal point slightly to 0.6619 and it was again quite likely to be today’s pivotal point. However, I thought it may be best to stand aside until after the FOMC releases. For this reason, I took no directional bias for the day on this currency pair.
The FOMC release strengthened the USD almost everywhere, and this currency pair was no exception. The recent price action wiped out come support levels, and the only such level we have anywhere nearby is at 0.6515. A bullish bounce here could give a very interesting medium to long-term counter-trend long trade opportunity, as it is a long-term low and also quite confluent with the big round number and psychological level at 0.6500.
The price is currently rising, so the next level that will be hit is most likely to be 0.6590.
I would be prepared to either short a bearish rejection of 0.6590 or long a bullish rejection of 0.6515, especially if the same rejection also touched 0.6500.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.