NZD/USD Forex Signal - 23 August 2016

NZD/USD Signal Update

Yesterday’s signals were not triggered as there was insufficiently bearish price action at 0.7306.

 

Today’s NZD/USD Signals

Risk 0.50%

Trades must be entered between 8am New York time and 5pm Tokyo time only, during the next 24 hours.

 

Long Trades

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7200 or 0.7260.

* 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 run.

 

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7398.

* 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 run.

 

NZD/USD Analysis

I was right about maintaining a long bias but wrong in predicting that the price would not reach 0.7306 again that day. We did not only reach that level, but broke above it and have so far remained above it too. This is a bullish sign aligned with a long-term bullish trend in this pair.

There are minor signs that the upwards move may be running out of steam, but really volatility is fairly thin in the Forex market generally so it is hard to forecast anything over relatively short-term horizons.

I would maintain a bullish bias in this currency pair.

NZDUSD

There is nothing due today concerning either the NZD or the USD.

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.