NZDUSD: Bearish price channel continues to hold
Yesterday’s signals were not triggered as there was no bullish price action when 0.6347 was reached.
Today’s NZD/USD Signals
Risk 0.75%.
Trades may only be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.
Short Trade Ideas
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6347 or 0.6406.
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 run.
Long Trade Idea
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6298.
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 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 action was bearish, and the dominant channel was bearish. It was simply a bearish picture. I was ready to take a bearish bias yesterday if we get a bearish reversal at or above 0.6400 before the support level at 0.6347 was hit.
I was correct to look to the short side, but the retracement I was looking for never made it back up to 0.6400.
The picture now is even more bearish. The price channel has held and pushed the price down to new lows for yet another day, with the former support level I had identified at 0.6374 breaking down and appearing to flip already to act as new lower resistance, which is a bearish sign.
The AUD is also bearish, but the NZD is more bearish still – both of these factors are bearish for this currency pair.
There is no reason not to take a bearish bias today as long as the price is below the new resistance at 0.6347.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the NZD, we will have a release of ANZ Business Confidence data at 2am.