NZD/USD Forex Signal - 23 October 2019

Adam Lemon

NZDUSD: Today’s pivotal point likely to be 0.6386

Yesterday’s signals may have produced a long trade a few hours ago from the support level at 0.6386. This trade is in profit but is moving slowly and looks quite doubtful so it might be wise to take partial profit to remove any risk.

Today’s NZD/USD Signals

Risk 0.50%.

Trades must be entered from 8am New York time Wednesday until 5pm Tokyo time Thursday only.

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 rise.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of 0.6386, 0.6354, or 0.6315.

  • 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 we seemed to be seeing the beginning of a bearish topping-out in this currency pair, but I also noted that it seemed less bearish than the very similar price action which was happening in the AUD/USD currency pair. This was a useful observation as the price here is holding up better than it is in the AUD/USD currency pair: here the support holds so far, while in AUD/USD, we have significant new lower resistance at 0.6850.

This means that I am reluctant to be bearish in this currency pair today, so I would be prepared to take a bullish bias if we get a retracement to 0.6386 and a bullish bounce there, as happened a few hours ago.NZDUSDThere is nothing of high importance due today concerning either the NZD or the USD

About the Author
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

Currency Pairs:
Comments

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.