NZD/USD Forex Signal - 18 January 2016

NZD/USD Signal Update

Last Thursday’s signals were not triggered as the price did not hit any of the key levels during the hours specified. Note how the level at 0.9398 has acted as good tradable support.

 

Today’s NZD/USD Signals

Risk 0.75%

Trades must be taken between 8am New York time and 5pm Tokyo time today.

 

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6390.

* 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.

* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6506.

* 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.

* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

 

NZD/USD Analysis

The NZD fell against the USD just like all the other commodity currencies did, but it is worth noting that the NZD retains some residual strength, certainly compared with the AUD. What is nice about this pair is that it is respecting horizontal support and resistance levels quite precisely, especially where they are confluent with round numbers, making this pair relatively easy to trade. If we get back down to 0.6390 and it holds, forming a double bottom, which could be a sign of an important medium-term reversal.

NZDUSD

There is nothing due today concerning the NZD. Regarding the USD, it is a public holiday in the USA today.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.