Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 0.6855.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm Tokyo time Friday.
Short Trade
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6833 or 0.6855.
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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 Trade
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6790.
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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 picture was looking very slightly bullish and that a sustained break above 0.6900 later after the FOMC release would probably be a bullish sign, as the price had plenty of room to rise before meeting the next resistance which was confluent at the major round number psychological level of 0.7000. This was a good call in a negative way, as the price could not even reach 0.6900 and instead turned bearish and dropped. The real story though was not the NZD or even the USD but the AUD which was hit by a trade issue with China and its fall dragged the NZD down.
There is no trend, just a long term, wide-swinging range and a messy chart, so the best approach would probably be to trade reversals at price extremes such as the support at 0.6790 if there is another good bullish bounce there.
There is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.
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