Today’s NZD/USD Signals
Risk 0.75%.Trades may only be taken between 8 am New York time and 5 pm Tokyo time, during the next 24-hour period.
Short Trade
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6500.
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 run.
Long Trade
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6347.
Put 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.
NZD/USD Analysis
I wrote yesterday that the price was sitting right on the 0.6450 level again, which could be expected to provide at least minor support. If the price fell cleanly from here, that would be a bearish sign suggesting an attempt at the multi-year lows below just above 0.6425. I would be bearish below 0.6440 if the price gets there quickly. This was a good call seeing 0.6440 as a likely pivotal level as the price turned bullish right there. The resistance at 0.6500 is likely to be strong as it is confluent with a psychologically key major round number. The NZD has not recovered as powerfully as some other currencies have in recent hours, so I still see a short following a healthy bearish reversal at 0.6500 as the best potential trade here and I would be bearish if it set up. Conversely, a break above 0.6500 would be a bullish sign.There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of CPI data at 1:30 pm London time.
