Yesterday’s signals were not triggered, as there was no bearish price action at 0.6855.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered before 5pm Tokyo time Thursday.
Short Trade
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Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6902.
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Put 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 ride.
Long Trades
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Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6855.
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Put 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 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 yesterday that the picture had become more bearish but less so than the AUD/USD currency pair. Either long or short trades from rejections of the nearest key levels were likely to be just as good as one another. I again took no directional bias today and thought we will see more action in the AUD/USD currency pair. This was a good plan and worked out OK as the UAD/USD was much more active than this currency pair.
The chart looks very slightly bullish. A sustained break above 0.6900 later after the FOMC release would probably be a bullish sign, as the price has plenty of room to rise before meeting the next resistance which is confluent at the major round number psychological level of 0.7000.
There is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.
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