NZDUSD: Bullish break above bearish price channel advances
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken before 5pm Tokyo time Friday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6406 or 0.6452.
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 Ideas
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6365 or 0.6347.
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 we had important bullish reversals both here and in the highly positively correlated AUD/USD currency pair, but it was more pronounced in the AUD/USD currency pair.
I thought that the key thing here was to watch and see whether the price could now get established above 0.6358 which looked likely to be today’s pivotal point. This was a good call it did, and the price is now approximately 30 pips higher.
The picture now is more bullish, but I still see the AUD/USD as the better bet for a long trade entry. I would not look to take a short trade either here or in the AUD/USD currency pair today, so I have a very broad bullish bias on these currency pairs.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 4pm.