NZDUSD: Bulls failing to make new highs
Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken before 5pm Tokyo time Wednesday.
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 yesterday that the situation was bullish over the short-term, but that we also had 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 was likely to be strong resistance.
The price has failed to rise to new highs, instead continuing a bullish consolidation pattern, but there are now signs that this could be a bearish “head & shoulders” formation. Much will now depend upon whether the nearby support levels hold. I would still be prepared to take a bullish bias if we get a firm bounce following a retracement to 0.6406, especially if the price action rejects the round number at 0.6400 at the same time as the horizontal support level just above it.
There is nothing of high importance due today concerning either the NZD or the USD.