NZD/USD Forex Signal - 14 August 2017

Last Thursday’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 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 0.7244.
  • 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 some bearish price action 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

The long-term bullish trend in this pair is now in serious doubt as the price continues to fall. It has broken strongly below the anticipated supportive area centred on 0.7300. Interestingly, the NZD remains clearly weaker than its “sister” currency, the AUD, following the RBNZ “talking down” the currency during its earlier major statement last week. It looks as if the price is going to continue moving down, as there are several bearish trend lines above which are making the presences felt and depressing the price. The key level that really stands out from the long-term charts that looks like a crucial “line in the sand” for the long-term trend is 0.7200.

There are initial signs of new resistance, flipping from support, at 0.7291, but it is too early to call. There will need to be some bullish momentum developing here when New York opens for it to be valid, so for the time being I am not including it as a true key support level.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.