NZDUSD: Bearish but support at 0.6288
Yesterday’s signals were not triggered, as there was no bearish price action at 0.6322.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6348 or 0.6365.
- 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 Ideas
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6288 or 0.6250.
- 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 both the resistance at 0.6322 was looking very strong, and the support at 0.6250 also looked very solid. I was not correct about the resistance.
We can now draw new higher support at 0.6288 and this looks likely to be today’s pivotal point. A bullish bounce there might well produce another run up to 0.6348 which would probably hold if it were reached later. However, I am generally more bearish as the RBNZ made it clear that it sees scope for further rate cuts, which is a slightly bearish tilt.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.