NZD/USD Forex Signal - 16 January 2019

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

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be taken between 8am New York time and 5pm Tokyo time today.

Short Trades

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6899 or 0.6910.

  • 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 Trade

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6708.

  • 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.

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 was a little less bullish now, but I still preferred to be bullish than bearish. I was ready to take a bullish bias if the price traded above the previous day’s high for more than an hour, or if it bounced firmly at the support level of 0.6795. Neither happened, and I was right to be cautious, as the price is moving down more strongly now and breaking below the former support level at 0.6795.

The picture now is even more bearish, and it looks as if we are going to see still lower prices. It is quite a long way to the next support level. The problem is that we are still in a recently congested area, so a clean downwards movement is unlikely to continue for very long. Markets are generally in flux, and I don’t see any clear opportunity as likely to come in this pair today.NZDUSDThere is nothing important due regarding either the USD or the NZD.

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.