NZD/USD Forex Signal - 23 April 2019

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

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trades

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6700 or 0.6730.
  • 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 run.

Long Trade

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

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NZD/USD Analysis

 I wrote yesterday that the picture was definitely bearish, and if the support at 0.6654 broke down, we could see the pace of the decline speed up and provide an opportunity to make some short pips. I was ready take a bearish bias today if the price breaks below 0.6670 on above-average volatility during the New York session later today. That did not happen, with the move down really happening during the Asian session instead. However, I was right about the price falling further.

The situation here is similar to that in the AUD/USD currency pair, except this pair is in a long-term bearish trend, so I have more faith in the move continuing. If the 0.6650 area breaks down, I think the price is quite likely to fall sharply all the way to 0.6579, so I would take a bearish bias if the price can trade below that area on healthy volatility later today.

nzdusd

There is nothing of high importance due today concerning either the NZD or the USD.

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.