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 from 8am New York time Monday until 5pm Tokyo time Tuesday.
Short Trade
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6802.
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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 run.
Long Trades
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6708, 0.6677, or 0.6655.
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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 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 would probably rise from here over the short-term, but 0.6802 looked likely to hold and might provide an opportunity to go short if there was a strong bearish reversal there later. I was correct about 0.6802 holding but wrong about the price rising: it has just gone sideways since last Thursday.
There is no long-term trend in this pair, but the medium-term momentum is with the bears due partly to the strong U.S. Dollar and partly due to the RBA’s statement last week which was seen as a little dovish. As such, I would be prepared to take a bearish bias if (and only if) the price makes a strong bearish reversal at 0.6802. However, it is also worth noting that the price is getting closer to a cluster of three support levels below which are likely to take a while to break down, if at all.
There is nothing of high importance due today regarding either the NZD or the USD.
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