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NZD/USD Forex Signal - 9 January 2018

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.

No signals have been given yet this year.

 

Today’s NZD/USD Signals

Risk 0.50%

Trades may only be taken between 8am New York time and 5pm Tokyo time, during the next 24-hour period.

 

Short Trade

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7240.

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

· 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 run.

 

Long Trades

· Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7110 or 0.7075.

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

· 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 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

The price of this pair has been moving up steadily over the past three weeks. Looking at the price chart below, it is possible to call it a channel, or at least a movement supported by a clearly bullish trend line. Technically, this suggests that the next major bullish bounce would be more likely to occur somewhere between 0.7130 and 0.7100, although that would be a relatively deep pullback. In addition to the medium-term bullish trend, there is still room for the price to move up further, so a long trade at the trend line could work out very well and is the obvious opportunity to look out for here.

NZDUSD

There is nothing important due today concerning either the NZD or the USD.

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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