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NZD/USD Forex Signal - 19 February 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.

Last Thursday’s signals were not triggered as none of the key levels were ever reached.

Today’s NZD/USD Signals

Risk 0.50%

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

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7460.

  • Put 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 Trades

  • Go long following some bullish price action on the H1 time frame immediately upon the next entry into the zone between 0.7364 and 0.7347.

  • Put 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 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

In my previous forecast last Thursday, I had a bullish bias, though I noted that the psychologically critical area around 0.7500 was not far ahead, which the price may find difficult to break quickly or at all. The price did rise somewhat, but overall just ranged up and down without even hitting any of the key levels. It has been the same situation with the AUD/USD currency pair. Due to the lifeless situation I take no strong directional bias over the short term, but I would favour a possible long trade at the support below if reached.

NZDUSD

There is nothing due today concerning either the NZD or the USD. It is a public holiday in the U.S.A.

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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