NZD/USD Forex Signal - 8 August 2019

NZDUSD: Price recovers from 3-year low

Yesterday’s signals were not triggered, as there was no bearish price action at 0.6444.

Today’s NZD/USD Signals

Risk 0.50%.

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

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6500 or 0.6590.

  • 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 Ideas

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

  • 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 price now was rising strongly but would very soon hit its first test at the former support level of 0.6444 which would probably act as resistance. This would probably be the day’s pivotal point, and if it was broken easily, we could see the price all the way back to the big round number at 0.6500 soon.

This was a reasonably good call as the price has continued to rise but has only risen weakly. The AUD/USD currency pair is rising more strongly, and the market seems more interested in that than the NZD/USD. This suggests that the AUD is more bullish than the NZD.

I see the best potential opportunity here as a short trade entry from a bearish reversal at 0.6500 but I am not very confident that this level will be hit today.

If the price breaks back below 0.6444 that would be a bearish sign – this is quite likely to be today’s pivotal point.NZDUSDThere is nothing of high importance due today concerning either the USD or the NZD.

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.