NZDUSD: NZD advancing but by less than the AUD
Last Thursday’s signals produced a profitable long trade from a bullish rejection of the support level identified at 0.6365.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be entered prior to 5pm Tokyo time Tuesday.
Short Trade Ideas
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6452, 0.6475, or 0.6500.
- 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 0.6406 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.
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 picture now had become more bullish, but I still saw the AUD/USD as the better bet for a long trade entry. I was correct to take a broadly bullish bias here, but not to see the AUD/USD as more bullish (it has risen by less than this NZD/USD currency pair since last Thursday).
All the commodity currencies are currently rising and seem to have made bullish medium-term reversals. The situation is bullish over the short-term, but here we have resistance levels ahead at the half, quarter and full numbers above the current price. The level at 0.6500 is also a major psychological level so it is likely to be strong resistance. I want to wait for the price rise to cool off or at least to reach 0.6500 before considering taking any short trade, but in the meantime, I would be happy to take a long trade from any bullish bounce following a retracement to 0.6406 or 0.6565.
There is nothing of high importance due today concerning either the NZD or the USD.