NZD/USD Forex Signal - 2 May 2019

Yesterday’s signals were not triggered, as there was no bullish price action at 0.6629.

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trade

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6700.

  • 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 Trades

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6579, or 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 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 the picture remained bullish and that if the FOMC release was negative for the U.S. Dollar, we would see a healthy rise in the price of this pair during the Asian session later. The price did hold up until the FOMC release but that has had the effect of actually boosting the greenback against the Kiwi.

The picture is now a little more bearish as the former support near 0.6636 seems to have slipped to become new lower resistance.

I would take a bullish bias in the unlikely even that the price falls to 0.6579 and makes a strong bullish bounce there.NZDUSDThere is nothing important due today concerning either the NZD or the USD.

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.