NZD/USD Forex Signal - 23 January 2019

|

Last Monday’s signals were not triggered as unfortunately the bullish bounce at 0.6708 did not happen until after the end of the Asian session that day.

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trade

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

  • 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 Trade

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6753.

  • 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.

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 last Monday that the price was now finally close to a clear and key support level at 0.6708 so we may see the beginning of a bullish turn here. However, it may take some time to play out.

I was partially correct and as it happened, the turn was fast.

We have seen a continuation of the bullishness, with new higher support at 0.6753 confluent with the half-number. It looks as if the price is likely to make higher prices today but watch out for the round number at 0.6800. It has plenty of room to rise before meeting any key resistance levels.NZDUSDThere is nothing of high importance due today regarding either the USD or the NZD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.