NZD/USD Forex Signal - 17 June 2019

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NZDUSD analysis: Short-term bullish countermove

Last Thursday’s signals produced losing trades from both 0.6558 and 0.6528.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be taken from 8am New York time Monday until 5pm Tokyo time Tuesday.

Short Trades

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6528 or 0.6558.

  • 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

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6443.

  • 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.

NZD/USD Analysis

I wrote last Thursday that commodity currencies were generally weak, and the USD was strong, although the AUD was weaker than the NSD. In this environment it could pay to be bearish, but the several support levels nearby still looked dangerous and likely to prevent a long, strong downwards movement happening now.

I was wrong about that, as the price moved down over the rest of the week, with unusually large volatility on Friday. However, we have seen a move up since the market opened in Asia, so the price does not seem ready to fall again, unlike the AUD, which is still more bearish than the NZD.

I would take a bearish bias if we get a further bullish retracement to 0.6528 and a firm bearish rejection of that level later, but I prefer to be short of AUD/USD than this currency pair.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.