Last Thursday’s signals were not triggered, as there was no bearish price action at 0.6500.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered from 8am New York time until 5pm Tokyo time, over the next 24-hour period only.
Short Trades
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6541 or 0.6562.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 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
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6497.
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Place the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 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 last Thursday that I still saw a short following a healthy bearish reversal at 0.6500 as the best potential trade here and I would be bearish if it set up. Conversely, a break above 0.6500 would be a bullish sign. This was a good choice of a pivotal level for the day, as the price surprised me by breaking strongly and quickly above 0.6500, and it went on to hold above that level and use it as new higher stairstep support. The NZD here looks more bullish than the AUD, which is a bullish sign for this pair, and the overcoming of 0.6500 might be a technically significant development. I would be very cautious about taking any short trades today as the action looks bullish, but I am not very biased that the price will rise further today so I take no bias.
Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time. Concerning the NZD, there will be a release of CPI data at 10:45pm.
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Editors’ Picks
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Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
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US economy: slower growth with stronger inflation
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