Yesterday’s signals were not triggered, as there was no bearish price action at 0.6800.
Today’s NZD/USD Signals
Risk 0.50%.
Trades may only be taken from 8am New York time until 5pm Tokyo time, over the next 24-hour period.
Short Trade
-
Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6857.
-
Place 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 run.
Long Trade
-
Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6822, 0.6804, or 0.6783.
-
Place the stop loss 1 pip below the local swing low.
-
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 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.
I wrote yesterday that until the RBA’s meeting minutes were published, I doubted there were going to be any good opportunities coming here. I was right, that event, plus the weaker than expected New Zealand inflation, has pushed up the NZD against a slightly weakening USD, and has produced a more bullish picture. However, the market is now flattening out ahead of the Chair of the Federal Reserve’s upcoming testimony, which is likely to produce the major move of the day later. I am bullish above 0.6857.
There is nothing important due today concerning the NZD. Regarding the USD, the Chair of the Federal Reserve will be testifying on the Semi-annual Monetary Policy Report before Congress at 3pm London time.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.