NZD/USD Forex Signal - 11 September 2019

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NZDUSD: Bullish consolidation above 0.6406

Yesterday’s signals were not triggered, as none of the key levels have been reached yet.

Today’s NZD/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of 0.6452, 0.6475, or 0.6500.

  • 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 0.6406 or 0.6365.

  • 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.

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NZD/USD Analysis

I wrote yesterday that it was unclear what the dominant consolidation pattern pointed towards. I thought much would now depend upon whether the nearby support levels hold. I was still looking for a long trade from a bullish bounce at 0.6406. Yesterday’s low was only 1 pip above that price, so it seems to have been a good call.

I would still be prepared to take a long trade from 0.6406, but the highly correlated AUD/USD currency pair is even more bullish than this one, so it might be better to look for long trades there given the very significant basing we are seeing now off a former significant resistance level at 0.6850.

Bulls should watch out for more failures close to 0.6452 which is starting to look more likely to hold. If the price can breakout and hold above that level, it would be a very bullish sign.NZDUSDThere is nothing of high importance due today concerning the NZD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

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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