NZD/USD Forex Signal - 18 July 2018

Yesterday’s signals were not triggered, as the bullish price action at 0.6750 did not take place until after the close of the Asian session.

Today’s NZD/USD Signals

Risk 0.50%.

Trades must 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 0.6788.

  • 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 Trade

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6750.

  • 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

After a very strong rise, the price has made an almost equally strong fall, cutting through three support levels and only making the start of a convincingly bullish bounce at 0.6750, which seems to be a strong level. This could be the start of a bullish “over and under” pattern. I have no directional bias, as the technical situation seems very confusing and uncertain.

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, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories at 3:30pm London time.

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.