NZDUSD: Sitting heavy on 0.6444
Yesterday’s signals were not triggered as there was insufficiently bullish price action at 0.6444.
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 Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6500.
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 0.6347.
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 the price seemed to be heading for the support level at 0.6444 and this was very likely to be the day’s pivotal point. I thought a sustained break below that level would be a bearish sign.
It certainly was and still is the relevant pivotal point for both today and yesterday. The NZD is one of the weakest major currencies, and the price is looking heavier and heavier as it eats away at the support at 0.6444. This support level looks likely to break down eventually and if we get a strong push down by 8 am or 9am New York time I would take a bearish bias and try to catch the impulsive thrust down that is likely to follow.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time.