NZD/USD Forex Signal - 4 December 2018

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trades

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7000 or 0.7053.

  • 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.

  • 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

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6888.

  • 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.

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 Australian Dollar was the strongest of all the major global currencies now and this has helped the NZD be strong too, albeit less so. Weekend gaps such as these are usually filled quite quickly, but there was every reason to be generally bullish. I would not want to enter any long trades until the gap had been filled and we got another bullish bounce in the 0.6888 area. I was right to be generally bullish, as the price has continued to rise as the U.S. Dollar remained weak; however there has not been a pull-back to the support and the gap remains unfilled which perhaps makes it even riskier to be bullish now. The resistance ahead is also confluent with the major round number at 0.7000, so the price may need to make a major retracement before it has a shot at breaking above the resistance. The environment remains generally bullish, but I would not want to start any new long trades here. I have no bias for now but would see a major reversal near 0.7000 as a major selling opportunity. If a rejection at 0.7000 happens at the same time as AUD/USD rejects 0.7500, that could be a major “double whammy” which enhances such a short trade opportunity.NZDUSD

There is nothing important 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.