NZDUSD: Bearish below 0.6350 area
Last Thursday’s signals were not triggered as there was no bullish price action at 0.6386.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be taken from 8am New York time Tuesday until 5pm Tokyo time Wednesday.
Short Trade Ideas
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6357 or 0.6386.
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 0.6315.
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 last Thursday that as there seemed to be more upside than downside potential in the price movement, I would again be ready to take a bullish bias if 0.6386 held into the New York open and we had gotten a solid bullish bounce off that level. This was a good identification of a pivotal point as the break in the early New York session below 0.6386 signalled the start of further downwards movement.
The price action now is broadly bearish and the break below the 0.6350 area shows that further downwards movement is more likely. I would be prepared to take a bearish bias if we get another bearish rejection of the 0.6357 level later.
There is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time.