Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time and 5pm Tokyo time today.
Short Trades
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6899 or 0.6910.
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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 Trades
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6794 or 0.6708.
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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.
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 last Thursday that I would be bullish if the price could trade above the high at about 0.6810 later, as I was generally bullish on riskier assets in particular the NZD which was especially strong. This was a good call as the price moved above that level and moved up by about another 35 pips. We have seen a sell-off as risk sentiment deteriorated, but the chart below shows it fits as a normal pull back within a wider bullish movement, unlike the highly correlated AUD/USD currency pair where the bearish pull-back looks more significant. This is a bullish sign and therefore it makes sense to take a bullish bias on this pair as long as the price remains above the support level at 0.6794.
There is nothing of high importance due today concerning either the NZD or the USD.
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