NZD/USD Forex Signal - 1 May 2019

Yesterday’s signals produced a long trade from the bullish bounce at the support level of 0.6629.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Wednesday until 5pm Tokyo time Thursday.

Short Trade

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

Long Trades

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6629, 0.6579, or 0.6569.
  • 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 yesterday that the picture has remained generally bullish and my bullish approach has turned out to be correct so far. As such I said that I would still look for a long trade from a bounce at 0.6629.

This was a good call as there was a strong bounce at that level, and the price has continued to rise from there. With the U.S. Dollar weak, it probably makes sense to continue to hold onto this trade, but perhaps to take enough profit to remove the risk before the FOMC release due later, as that could cause a strong, sharp price movement in any direction.

I think that if the FOMC release is negative for the U.S. Dollar, we will see a healthy rise in the price of this pair during the Asian session later.

nzdusd

There is nothing important due today concerning the NZD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm and the press conference half an hour later.

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.