NZD/USD Forex Signal
|Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6750.
Today’s NZD/USD Signals
Risk 0.50%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trade
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6800.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Remove 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
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Go long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6675.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Remove 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.
I wrote yesterday that it looked as if the price could now continue to move down all the way to 0.6750, so I saw no reason not to take a bearish bias. This was absolutely correct and played out perfectly. The support has held the price, but only weakly, suggesting profit taking by short traders rather than real buying. For this reason, I would take a bearish bias today if the price can get established below the 0.6750 level, after the USD CPI data has had at least an hour to be digested by the market.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
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