Last Thursday’s signals were not triggered, as there was no bullish price action at 0.6790.
Today’s NZD/USD Signals
Risk 0.75%.
Trades must be entered before 5pm Tokyo time Tuesday.
Short Trade
-
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6902.
-
Put the stop loss 1 pip above the local swing high.
-
Adjust the stop loss to break even once the trade is 20 pips in profit.
-
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
-
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6853 or 0.6833.
-
Put the stop loss 1 pip above the local swing high.
-
Adjust the stop loss to break even once the trade is 20 pips in profit.
-
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.
NZD/USD Analysis
I wrote last Thursday that there was 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. I was almost correct, as there was a strong and sharp bullish reversal about 30 pips below that level: the extreme was rejected.
The picture now is more bullish as we have seen a strong rise in the price, with the U.S. Dollar currently acting as the weakest currency generally, which suggests still higher prices. However, we are currently close to a major resistance level which is also very confluent with a round number, at 0.6902. I would not want to enter a short trade there until the price had lost its bullish momentum over several hours at least.
There is nothing of high importance due today concerning either the NZD or the USD.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.