NZDUSD: Weakly bearish ahead of FOMC
Yesterday’s signals were not triggered, as there was no bearish price action at 0.6347.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered 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 0.6340 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 0.6317 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 I thought a day or so of consolidation was a likely scenario now as we were almost at the support level of 0.6317. If that level broke down, the road to what is likely to be strong support at 0.6250 becomes wide open.
The level held and the price moved up for a while before selling off again, so my call was at least enough to ensure staying out of trouble.
The picture now is a little more bullish than it was with 0.6317 holding so far, but I still see the odds as in favour of a move down to the big support level at 0.6250. If the FOMC release later boosts the Dollar we could see that happen, but I think it is unlikely.
I would take a bearish bias later if we get 2 consecutive hourly closes below 0.6300 after the FOMC releases.
There is nothing of high importance due today concerning either the NZD or USD.