NZD/USD Forex Signal - 20 September 2017

Yesterday’s signals produced a losing short trade following the bearish inside candle breakdown following the rejection of the former resistance level identified at 0.7337.

Today’s NZD/USD Signals

Risk 0.75%

Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period.

Protect any open trade by 6:30pm.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7337, 0.7254, or 0.7214.
  • Place the stop loss 1 pip below the local swing low.
  • Adjust 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.

Short Trades

  • Go short following some bearish price action on the H1 time frame immediately upon the next touch of 0.7391 or 0.7460.
  • Place the stop loss 1 pip above the local swing high.
  • Adjust 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.

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 situation was looking bullish, with a clear higher low producing a big bullish swing. The situation continues, with the price breaking above the former resistance level of 0.7337, which has now probably flipped to become support. The price rise has been capped by the upper channel trend line visible in the chart below. I maintain a bullish bias.

NZDUSD

Regarding the USD, there will be a release of the FOMC Statement, Projections, and Federal Funds Rate at 7pm London time, followed by the usual press conference. There will also be a release of Crude Oil Inventories earlier at 3:30pm. Concerning the NZD, there will be a release of GDP data at 11:45pm.

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.