Yesterday’s signals produced a short trade entry following the bearish rejection of the resistance level at 0.7344. This trade would still be open, at about break even, and is not looking as if it is going especially well as the price action is now looking bullish so it could be wise to exit.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken between 8am New York time until 5pm Tokyo time, over the next 24-hours.
Short Trade
-
Short trade entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7344.
-
Place 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 run.
Long Trades
-
Long trade entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7214, or 0.7188.
-
Place the stop loss 1 pip below the local swing low.
-
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 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
Most currencies are starting to look less bullish against the USD, but despite the rejection of the resistance level at 0.7344, the action here still looks bullish. The price has been rising over the last few hours, producing a pin candlestick and a “V” LOP, so I maintain a bullish bias. Additionally, there are still supportive trend lines holding the price up, which can be seen in the price chart below. It looks as if the momentum is strong enough to require a double top at 0.7344 before the price could be ready to turn around and start falling properly.
There is nothing important due today concerning either the NZD or the USD.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.