NZDUSD: Ranging conditions prevail
Yesterday’s signals were not triggered as there was no suitable price action when the support and resistance levels identified were reached.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be entered from 8am New York time Thursday to 5pm Tokyo time Friday only.
Short Trade Ideas
- Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6348, 0.6365, or 0.6397.
- 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 0.6315 or 0.6255.
- 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 would take a bearish bias later if we had gotten two consecutive hourly closes below 0.6250. Luckily this was just barely avoided, but I was correct to see this price as pivotal as there was a strong rise from there, concurrent with AUD/USD, as the New York session got underway. However, the AUD/USD currency pair looks generally more bullish than this one, so while I can see AUD/USD continuing to rise significantly, I suspect this pair is likely to keep on ranging. Therefore, I see the best potential trade set-up which might occur today as a short trade from any of the resistance levels shown in the price chart, especially 0.6348 as it is confluent with the half number at 0.6350.
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 and Crude Oil Inventories at 4pm.