NZDUSD: Weakly bearish below 0.6390
Yesterday’s signals were not triggered as the bearish price action resisting the resistance level at 0.6390 was too weak to justify a trade entry. However, the level held as the high of the day almost to the pip.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be taken from 8am New York time Thursday until 5pm Tokyo time Friday.
Short Trade Ideas
⦁ Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6390, 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 0.6315.
⦁ 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 I did not see much opportunity here and the action on longer-term charts looked messy, with no clear direction.
This wasn’t a bad call as although the resistance at 0.6390 which I identified did have an impact, movement has been relatively negligible.
The picture is a little more bearish technically with 0.6390 continuing to hold as resistance, but there is still more action in the AUD/USD currency pair, so again, I would avoid trading this currency pair today.
There is nothing of high importance due today concerning either the NZD or the USD