NZD/USD Forex Signal - 9 September 2019

NZDUSD: NZD advancing but by less than the AUD

Last Thursday’s signals produced a profitable long trade from a bullish rejection of the support level identified at 0.6365.

Today’s NZD/USD Signals

Risk 0.75%.

Trades may only be entered prior to 5pm Tokyo time Tuesday.

Short Trade Ideas

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6452, 0.6475, or 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 0.6406 or 0.6365.
  • 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 the picture now had become more bullish, but I still saw the AUD/USD as the better bet for a long trade entry. I was correct to take a broadly bullish bias here, but not to see the AUD/USD as more bullish (it has risen by less than this NZD/USD currency pair since last Thursday).

All the commodity currencies are currently rising and seem to have made bullish medium-term reversals. The situation is bullish over the short-term, but here we have resistance levels ahead at the half, quarter and full numbers above the current price. The level at 0.6500 is also a major psychological level so it is likely to be strong resistance. I want to wait for the price rise to cool off or at least to reach 0.6500 before considering taking any short trade, but in the meantime, I would be happy to take a long trade from any bullish bounce following a retracement to 0.6406 or 0.6565.

nzdusd

There is nothing of high importance due today concerning either the NZD or the USD.

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.