NZD/USD Forex Signal - 17 October 2018

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

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trade

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6635.

  • Place 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

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6541 or 0.6497.

  • Place 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 looked a little likely to rise, as it was already bouncing off new higher support, with another new support level close by underneath that one. The NZD was also more bullish than its sister currency the AUD, which was another factor making me at least weakly bullish here yesterday. The price has indeed moved up a little over the past day, so it wasn’t a bad call, but the rise has been disappointing and small, with the short-term price action looking a little bearish too. For these reasons, I am less optimistic today, as it seems the U.S. Dollar is coming back a little generally. A retracement back to the nearby support at 0.6562 seems to be on the cards. I would be bullish if there is a firm bullish bounce there later.

NZDUSD

There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm 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.