NZD/USD Forex Signal - 9 January 2019

|

Yesterday’s signals were not triggered, as there was no bullish price action when the price reached 0.6677.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be taken 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 0.6789.

  • 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 0.6708, 0.6677, or 0.6655.

  • 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 still broadly bullish, and I would take a bullish bias if we retraced to either 0.6726 or 0.6677 and got a strong bullish bounce at either one of those levels. In fact, we got a strong bullish bounce between those levels, after which the price moved to new highs, so while I was broadly correct, my levels were not accurate enough (or too accurate, depending upon how you look at it). There is relatively strong bullishness in the NZD at present, so I would remain cautiously bullish here until the FOMC release due later which might push the price anywhere. There is no true long-term trend in this pair, just residual bullish momentum from the strong upwards movement over recent days, backed by positive risk sentiment in markets generally.NZDUSDThere is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.

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.