Yesterday’s signals produced a short trade entry following the bearish inside candle break rejecting the lower descending trend line shown in the price chart below. It would be wise to take partial profit or move the stop loss to break even if not done already.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trades
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6956 or either of the descending trend lines shown in the price chart below.
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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 Trades
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Go long following some very convincing strongly bullish price action on the H1 time frame immediately upon the next touch of 0.6879 or 0.6858.
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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.
NZD/USD Analysis
I took a bearish bias yesterday and this worked very well with the price rejecting the lower descending trend line, although on its way up earlier the price also printed a higher support level. The action is now stabilizing just above that support level. The probable direction looks less certain today than it did yesterday, but a bearish bias still looks correct as the dominant structure is still the trend lines which are clearly suppressing the price and moving it down, as shown in the price chart below, in line with the longer-term trend.
There is nothing due today concerning either the NZD or the USD.
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