NZDUSD: Bearish price channel still holding
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6406 or 0.6452.
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 NZD remained relatively bearish but noted there was a key support level at 0.6347 which had held, and which may begin to work to break up the bearish flow.
I continued to look for short trades and the level at 0.6406 again looked very attractive as it was highly confluent with the upper trend line of the bearish price channel.
This was a good call overall. The price never quite reached the resistance level I identified at 0.6406 but it did turn bearish again once it just about grazed the top of the price channel.
The action is bearish, and the dominant channel is bearish.
I would take a bearish bias today if we get a bearish reversal at or above 0.6400 before the support level at 0.6347 is hit.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.