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NZD/USD Forex Signal - 20 August 2015

By 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.

NZD/USD Signal Update

Last Tuesday’s signals expired without being triggered.

Today’s NZD/USD Signals

Risk 0.75%

Trades may only be taken between 8am and 5pm New York time only, or after 8am Tokyo time later.

Short Trade 1

• Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6668.

• 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 ride.

Short Trade 2

• Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6761.

• 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 ride.

Long Trade 1

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.6500 and 0.6466.

• Place the stop loss 1 pip below the local swing low.

• 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 price reaches 0.7300 and leave the remainder of the position to ride.

NZD/USD Analysis

It is interesting that while the AUD/USD is selling off, the NZD/USD is hardly moving. It suggests the NZD has more inherent strength than its highly positively correlated sister currency. However it still seems to have difficulty in remaining much above the 0.6600 round number which is acting as local resistance. I still have a bearish bias overall but this pair, like most of the market right now, is really taking its time doing anything.

NZD/USD Analysis

There is nothing due concerning the NZD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Existing Home Sales and the Philly Fed Manufacturing Index at 3pm.

Adam Lemon
About 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.

 

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