NZDUSD: Bullish break above bearish price channel at last
Yesterday’s signals were not triggered as none of the key levels were reached yesterday.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered prior to 5pm Tokyo time Thursday.
Short Trade Idea
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6406.
- 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 Idea
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6317
- 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 we had a more clearly bearish picture with a wide bearish price channel holding which itself contained a narrower bearish price channel within its lower half.
I was looking to take a bearish bias at either the inner channel’s upper trend line or 0.6358.
This call made sense and was not accurate, in fact it was completely wrong, but sticking to the identified levels would at least have kept anyone out of trouble.
We have important bullish reversals both here and in the highly positively correlated AUD/USD currency pair, but it is driven by and is also more pronounced in the AUD/USD currency pair.
The key thing here is to watch and see whether the price can now get established above 0.6358 which looks likely to be today’s pivotal point. Yet I would prefer a long in AUD/USD than a long here in this pair today.
There is nothing of high importance due today concerning either the NZD or the USD.