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 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.
Learn more from Adam in his free lessons at FX Academy