NZDUSD: Unpredictable price action
Yesterday’s signals were not triggered, as there was no bullish price action when the support level identified at 0.6386 was reached.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Short Trade Ideas
⦁ Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6390, 0.6430, or 0.6475.
⦁ 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 Idea
⦁ Long entry following bullish price action on the H1 time frame immediately upon the next touch of 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 yesterday that the AUD/USD currency pair was more interesting than what we were seeing here, so I wanted to leave this pair alone today. I also noted the AUD/USD was more bullish, and this has continued, with the price moving lower here and looking more bearish.
The key technical event was the break below a pivotal point I had highlighted at 0.6386, and this has been an important level as we see the price now getting established below it and the level acting as resistance. Therefore, it may be possible to be more bearish as long as the price stays below it.
Overall, I do not see much opportunity here and the action on longer-term charts looks messy, with no clear direction. This means it is probably wise to avoid trading this currency pair for the time being.
There is nothing of high importance due today concerning either the NZD or the USD