NZD/USD Forex Signal - 19 July 2018

Yesterday’s signals were not triggered, as there was no bearish price action at 0.6788.

Today’s NZD/USD Signals

Risk 0.50%.

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

Short Trades

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6788 or 0.6804.

  • 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.

Long Trade

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6675.

  • 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.

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 had no directional bias, as the technical situation seemed very confusing and uncertain, although I saw a possibility of a rise from 0.6750 as a bullish “up and under” pattern seemed to be in place. The price did rise strongly from there but then fell very sharply, and at present both the NZD and AUD are falling very strongly. Here, at the time of writing, we are seeing a bearish break below 0.6750, which makes me take a bearish bias on this pair today.NZDUSD

There is nothing important due today concerning either the NZD or the USD.

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.