NZDUSD: Bulls losing momentum
Yesterday’s signals were not triggered, as none of the key levels identified were reached yesterday.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Ideas
⦁ Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6430 or 0.6475.
⦁ 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 0.6344 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 that the best opportunity on this pair would now be to wait until the price gets into the area between 0.6450 and 0.6500 and pick a strong bearish reversal in that zone as a signal to go short if it happens. Until this takes place, either a long or a short trade from either nearby key level would be likely to provide some profit.
This was enough to at least keep out of trouble, as the price has done very little over the past day.
A new technical feature has emerged here and is shown within the price chart below: a bearish trend line connecting recent highs which is currently successfully holding the price down at about 0.6410. This is a comparatively minor feature.
I see short trades from bearish reversals at either 0.6430 or 0.6475 as likely to be the best opportunities which could set up here in this pair, but it is quite likely neither level will be reached today.
There is nothing of high importance due today concerning either the NZD or the USD.