NZD/USD Forex Signal - 13 May 2019

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Last Wednesday’s signals were not triggered as neither 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 Monday and 5pm Tokyo time Tuesday.

Short Trade

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6636.

  • 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

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6569.

  • 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 last Wednesday that it was quite likely we would see lower prices over the short-term, but there was also a chance that we have put in a long-term low, so the price may slowly rise from here over the coming days and weeks – it may be good odds for a long-term buy.

I expected that it would be interesting how the price reacts over the coming days and that should tell us a lot about where the NZD is going.

This was a pretty good call as the price hasn’t really gone anywhere since I wrote that – it has just fluctuated up and down. It seems increasingly likely that we have put in a major bottom here last week, and although the action still looks finely balanced, the picture is definitely a little more bullish. However, I would want to see the recent highs just above 0.6610 taken out before taking any bullish bias. Alternatively, if the price can close for two consecutive hours below 0.6569, I would take a bearish bias. I doubt either scenario will play out today.NZDUSDThere is nothing important 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.