NZDUSD: Bullish inner trend line break
NZD/USD Daily Forecast 2nd September 2019
Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 0.6298.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am to 5pm Tokyo time Tuesday.
Short Trade Idea
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6358.
- Put 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 0.6250.
- Put 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 last Thursday that the long-term bearish price channel continued to hold, so there still seemed to be sufficient reason to be taking a bearish bias and looking for short trades. This was a good call as the price moved down over the day, although we did not get back to the 0.6358 level which I had been waiting for.
I have had to widen the bearish price channel which still survives. However, we are getting a couple of bullish signs on the shorter-term time frames: a bullish over and under price pattern basing at about 0.6290, and a bullish break of an inner bearish trend line which can be seen within the price chart below.
Nevertheless, I would still be looking for a short trade after a pullback to 0.6358 followed by a bearish reversal there.
There is nothing of high importance due today concerning the NZD or the USD. It is a public holiday in the U.S.A. today.