NZDUSD: Pivotal point at 0.6386 becomes more important
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
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 0.6386, 0.6354, or 0.6315.
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 key support was holding up here but was not in the AUD/USD currency pair, which was a bullish sign. This was a relatively good call as I was only looking for a long trade entry at 0.6386, which is only just being reached at the time of writing.
Although the price chart below is arguably showing an asymmetrical bearish head and shoulders pattern, I think the support at 0.6386 is more significant, and this is very likely to be today’s pivotal point.
As there seems to be more upside than downside potential in the price movement, I would again be read to take a bullish bias if 0.6386 holds into the New York open and we get a solid bullish bounce off that level.
There is nothing of high importance due today concerning either the NZD or the USD.