NZDUSD: Strong resistance near 0.6500
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be entered between 8am New York time Monday and 5pm Tokyo time Tuesday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 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 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 last Thursday that I would keep avoiding trading this pair, as it was extremely unlikely there would be any good opportunities here for the rest of this week. This was a reasonably good call as the price just went sideways over the day.
The NZD, along with the AUD, is one of the most bullish major currencies, but it may be topping out as it runs into an area of strong resistance at and below the psychologically important 0.6500 level.
I would be prepared to take a short bias following a firm bearish bounce off either of the resistance level at 0.6475 or 0.6500, especially during the second half of the Asian session later.
There is nothing of high importance scheduled today concerning either the USD or the NZD.