Yesterday’s signals were not triggered, as there was no bullish price action at 0.6873.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time to 5pm Tokyo time today only.
Short Trades
-
Go short immediately upon the next touch of 0.6871 or 0.6902.
-
Place the stop loss 1 pip above the local swing high.
-
Move the stop loss to break even once the trade is 20 pips in profit.
-
Take off 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
-
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6802.
-
Place the stop loss 1 pip above the local swing high.
-
Move the stop loss to break even once the trade is 20 pips in profit.
-
Take off 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 wrote yesterday that the price was stuck and quite evenly balanced. This meant it was probably unwise to be in any trades until the price gets out of this range between 0.6873 and 0.6901. However, I was comfortable taking a bullish bias above 0.6873, which turned out to be a bad call. I was right that a break out of the range would probably produce stronger directional movement though, as we have seen the price fall further than the 0.6873 level once the price got below it. Part of the reason for the fall was the NZD being dragged down by a strongly falling AUD, as well as the general strength of the USD.
The picture now is more bearish, despite medium-term strength in the USD, so I would be comfortable taking a bearish bias following a rejection of either of the nearby resistance levels.
Regarding the NZD, there will be releases of Employment Change and Unemployment Rate data at 9:45pm London time. Regarding the USD, the Chair of the Federal Reserve will be making a minor speech at Midnight.
Recommended Content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.