NZDUSD: Ranging between 0.6315 to 0.6452
Yesterday’s signals were not triggered, as there was no bearish price action when 0.6386 was reached.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be taken from 8am New York time Thursday to 5pm Tokyo time Friday.
Short Trade Idea
Go short following bearish price action on the H1 time frame immediately upon the next touch of 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 Idea
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6386 or 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 yesterday a strong USD would probably be felt most in the USD/JPY pair while a weak USD should impact AUD/USD more than it would be felt here.
For these reasons, I thought that it was probably worth avoiding trading this currency pair yesterday. This was a good call because, as I anticipated, the AUD/USD pair was better placed to exploit the weakening Dollar which resulted from the FOMC release.
The price now can be seen to be near the middle of a long-term wide range, with ranging price action. However, there is potential support at 0.6386 not far below the current price.
I would keep avoiding trading this pair, as it is extremely unlikely there will be any good opportunities here for the rest of this week.
There is nothing of high importance scheduled today concerning either the USD or the NZD.