Yesterday’s signals produced a short trade from the breakdown of the double pin candlestick formation which rejected the resistance level at 0.6659, but this trade only produced the minimum 20 pips of profit.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

Short Trade

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6720.
  • Place 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

  • Go long following bullish price action on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 0.6635, 0.6622, 0.6600.
  • Place 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

    I wrote that if the price could rise from 0.6635 and get established above 0.6659, I would take a short-term bullish bias. It would have been better just to see 0.6635 as the pivotal level. Although the price spiked up above 0.6659, it has fallen back quickly. The picture looks slightly more bullish than it did yesterday, as there is now no obvious resistance until 0.6721. I think that the pivotal level will remain at 0.6635, and if we get a bullish bounce there I would be comfortable taking a bullish bias at that point.

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