NZD/USD Forex Signal - 11 June 2019

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NZDUSD analysis: More bearish below 0.6600

Yesterday’s signals were not triggered, as there was insufficiently bullish price action when the former support level at 0.6605 was 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

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6605 or 0.6653.

  • 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

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6558, 0.6543, or 0.6528.

  • 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.

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 had become more bearish as despite the technical structure still looking medium-term bullish, we were seeing a steady sell-off in this pair. However, it seemed quite likely that we were going to get some amount of bullish bounce when the support at 0.6605 was tested again, which looked very likely to happen.

I was right that 0.6605 would be reached, and the lack of a solid bounce there was the first sign that the level would be broken so my forecast was at least enough to stay out of trouble. The break below the level happened quite cleanly so it will probably act as resistance now.

I think the price here is quite likely to continue to fall over the coming hours and maybe even reach the nearest support level at 0.6558. I would take a bearish bias if we get a retracement to the new resistance at 0.6605 and see a strong bearish bounce and rejection of the level there.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.