NZD/USD Forex Signal - 21 August 2017

Last Thursday’s signals produced a profitable long trade following the bullish bounce off the support level identified at 0.7275, to the pip. This is looking less convincing as a long-term hold, however.

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 Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7275 or 0.7253.
  • 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

After taking a more bullish turn, the price has confirmed the support at 0.7275 by bouncing bullishly off it. There is a long-term bullish trend and the price has broken up above a pair of bearish trend lines. There is a remaining long-term bearish trend line above, but it has not been touched for such a long time that I do not think it is likely to be very influential. These factors strengthen the bullish case, but volatility seems very low and there is little convincing action here yet. The pair may pick up later in the week but for now does not seem to be in the market’s focus much.

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.