NZD/USD Forex Signal - 12 June 2019

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NZDUSD analysis: Too even to call

Yesterday’s signals were not triggered, as none of the key levels identified were ever reached.

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trades

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

  • 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

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

  • 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 yesterday I thought the price here was quite likely to continue to fall over the coming hours and maybe even reach the nearest support level at 0.6558. I was ready to take a bearish bias if we get a retracement to the new resistance at 0.6605 and saw a strong bearish bounce and rejection of the level there.

This was a good call as we did see the price continue to trade lower, although it never reached 0.6558. We can now draw lower resistance at 0.6590 and looking at the price chart below, it seems that the price is quite finely balanced here between 0.6590 and 0.6558.

It is likely that the U.S. data release due later, which is important, will give us some direction, but it is probably wise to stand aside until a couple of hours or so after that release later.NZDUSDRegarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time. There is nothing of high importance due today concerning the NZD.

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.