NZD/USD Forex Signal - 20 June 2018

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

Today’s NZD/USD Signals

Risk 0.50%.

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

Short Trade

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6960.

  • Put 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.

Long Trades

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6884, 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 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 had a bearish bias yesterday, which has worked out well as the price has fallen. I noted that the NZD was not looking especially bearish, but now it is, with the price here falling harder and more constantly than any other currency against a strong U.S. Dollar. At the time of writing, the price is reaching a cluster of long-term support levels between 0.6884 and 0.6859, which is likely to be a sever test for bears. I am not sure what will happen next, but I would be very bearish if the price is able to get established below 0.6850. The New Zealand GDP data release due later could prove to be crucial in determining what happens next.NZDUSD

Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. 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.