NZD/USD Forex Signal - 16 July 2019

Adam Lemon

NZDUSD: New bullish 3-month high price

Yesterday’s signals were not triggered as there was insufficiently bearish price action at 0.6730.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be entered from 8am New York time until 5pm Tokyo time today.

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6747 or 0.6781.

  • 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 Trade Idea

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6687 or 0.6656.

  • 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.

NZD/USD Analysis

I wrote yesterday that the signs were all bullish, and that if we saw an extended move which got established above the key psychological level of 0.6750, that would be a very bullish sign and suggest a further rise was likely.

Although the price did rise further, it never reached the resistance at 0.6747, suggesting we are still in only a weakly bullish situation. It makes sense to keep looking to the bullish side, as the price made a new multi-month high, but we really need to see the price get established above the big psychological level of 0.6750 before any bullish move becomes strongly likely – I would take a bullish bias in that scenario.NZDUSDThere is nothing of high importance due today regarding the NZD. Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time, followed by minor speeches from the Chair of the Federal Reserve at 6pm and FOMC Member Evans at 8:30pm.

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

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