NZD/USD Forex Signal - 12 August 2019

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NZDUSD: Sold from 0.6500

Last Thursday’s signals were not triggered as none of the key levels were reached that day.

Today’s NZD/USD Signals

Risk 0.50%.

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

Short Trade Idea

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6500.

  • 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 Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6444 or 0.6347.

  • 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 last Thursday that I saw the best potential opportunity here as a short trade entry from a bearish reversal at 0.6500 but I was not very confident that this level would be hit over Thursday.

This was an excellent call as it forecast exactly what happened, when the price hit 0.6500 on Friday and made a top from where it is currently moving down with short-term bearish momentum.

The price seems to be heading for the support level at 0.6444 and this is very likely to be today’s pivotal point.

I have no directional bias, but I would see a sustained break below that level as a bearish sign if it happens today.NZDUSDThere is nothing of high importance due today concerning either the USD or the NZD.

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.
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