NZD/USD Forex Signal - 23 May 2018

Yesterday’s signals were not triggered as there was insufficiently bullish price action when the support level at 0.6938 was reached.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

Short Trade

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6943.

  • 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.

Long Trades

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6873 or 0.6859.

  • Put 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 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 I thought that if the new support and trend line held after a retest, a long trade entry could be very interesting. Unfortunately, this scenario played out and the price then fell sharply right away! The picture is less clear now, as there are signs that the long-term bearish trend has run out of momentum, with buying taking place every time the price falls below 0.6900, creating a more bullish structure over the medium-term. I would be more bullish above 0.6943, but for the time being, I have no directional bias.
NZDUSD

There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.

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.