NZDUSD: More bearish below 0.6322
Yesterday’s signals produced a profitable short trade entry from the bearish price action at 0.6340. It would probably be wise to allow this to run if a new low is made soon.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6322, 0.6340, or 0.6365.
Put 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.
Long Trade Idea
Go long 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.
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 that I still saw the odds as in favour of a move down to the big support level at 0.6250. I was ready to take a bearish bias if we had gotten 2 consecutive hourly closes below 0.6300 after the FOMC releases.
Although the flipped lower resistance patterns we see in the price chart below are bearish, we did not get such closes, but we still seem to have a wide-open road to the strong support at 0.6250 once the low of the past few hours gets solidly broken.
I am again prepared to take a bearish bias if we get two consecutive hourly closes below 0.6300 after 8am New York time.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of Philly Fed Manufacturing Index data at 1:30pm London time.