NZD/USD Forex Signal - 19 July 2017

Yesterday’s signals were not triggered as the bearish price action took place above 0.7359.

Today’s NZD/USD Signals

Risk 0.50%

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

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7300.
  • 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.
  • 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.

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7391.
  • 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 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 forecasted yesterday that “although it does not look as if the price is going to turn bearish or fall quickly, I have severe doubts that the price is going to be able to rise beyond 0.7391.” This is exactly what happened, with the price rising above and invalidating the former resistance level at 0.7359. It now looks as if the pair, which remains significantly less bullish than the highly correlated AUD/USD currency pair, is going to make a deeper pull back before being able to break above 0.7391, if it all. I see the round number at 0.7300 as the logical next strong support which will be reached before this can happen.NZDUSD

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.

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.