NZD/USD Forex Signal

Tuesday, 19 December 2017 9:56

By: DailyForex.com

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

 

Today’s NZD/USD Signals

Risk 0.50%

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

 

Short Trades

· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7035 or 0.7102.

· 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.

 

Long Trades

· Go long following some bullish price action on the H1 time frame immediately upon the next touch of 0.6925 or 0.6908.

· 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.

 

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 price had kept failing very close the resistance level at 0.7035, so a continued push down to the next support at 0.6925 would not be a major surprise. This would also be in line with the long-term trend. Over the past 24 hours, the price has simply consolidated between 0.7035 and the supportive trend line, which is shown in the chart below. Even during a period of USD weakness, the NZD has failed to rise, and the confidence numbers last night were gloomy. This suggests that a breakdown below the trend line could see the price move down quickly, as a bullish flag pattern would be failing, with 0.6925 the obvious price target. I have a short-term bearish bias below the trend line, particularly below 0.6975.
NZDUSD

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

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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