NZDUSD: Bullish flag pattern
Yesterday’s signals produced a profitable short trade from the bearish inside candlestick rejection of the resistance level at 0.6833.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Short Trade Ideas
⦁ Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6433 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.
⦁ 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 thought the next movement would depend upon whether the price got established back below 0.6410, in fact let’s say the round number at 0.6400 to be safe. The price would then have enough room to make a downwards move, so I would take a bearish bias if that scenario played out soon after the New York open or, even better, soon after the Tokyo open. This was a good call as the round number at 0.6400 was the pivotal point for the day, I was just wrong about the direction.
We have a weak bullish flag pattern but the resistance level at 0.6433 has continued to successfully hold the price and act as resistance. If the price can spend two hours later above 0.6440 this would be a bullish sign of a likely move up to 0.6475 or even 0.6500, where we could anticipate a major bearish reversal entry point, and I would take a weak bullish bias above 0.6440 until 0.6475 is hit.
There is nothing of high importance due today concerning the NZD or the USD.