By: DailyForex.com
Yesterday’s signals produced a short trade following the bearish inside candlestick which rejected the resistance level I identified at 0.7374. It has now made the minimum 20 pips of profit required to break even.
Today’s NZD/USD Signals
Risk 0.50%
Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.
Short Trades
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7374 or 0.7460.
· Put the stop loss 1 pip above the local swing high.
· Move the stop loss to break even once the trade is 20 pips in profit.
· Take off 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 some bullish price action on the H1 time frame immediately upon the next touch of 0.7304 or 0.7283.
· Put the stop loss 1 pip below the local swing low.
· Move the stop loss to break even once the trade is 20 pips in profit.
· Take off 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
Yesterday I maintained my bullish bias this worked out very well, with the price continuing to rise to reach the next resistance level at 0.7374. I thought it would be right to be very careful before taking a short trade there, but that also would have worked and is in a little profit and still open. Therefore, I am less bullish today, even though there is a long-term bullish trend which is driving the price. Everything will now probably depend upon the U.S. data releases due later. If they are bearish for the greenback, the price should convincingly break the resistance level at 0.7374.
There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of CPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and the FOMC Meeting Minutes at 7pm.
