(MENAFN- Daily Forex) Last Thursday's signals produced a profitable short trade from the bearish rejection of the resistance level identified at 0.6888, but it only made barely the minimum 20 pips of profit.
Today's NZD/USD Signals
Risk 0.75%.
Trades must be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period only.
Short Trade
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Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6899.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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
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Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6698.
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Put the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 last Thursday that we were currently seeing sentiment against the Australian Dollar which is always sensitive to risk-off sentiment, which is helping to weaken the New Zealand Dollar. So, although the bearish movement may have been running out of momentum, I was be prepared to take a bearish bias if we see a retracement to the 0.6888 level following by a failure and a fresh bearish push. This was a pretty good call, as the price rejected that level and continued to trade lower. The price is still rejecting that level, but it has been touched a few times and is starting to look weaker now. A sustained break above 0.6900 will be a relatively bullish sign, but I think that this pair is best avoided by traders today and I take no directional bias.
There is nothing important due today concerning either the NZD or the USD.
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