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NZD/USD Forex Signal - 20 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.

Yesterday’s signals were not triggered, as none of the key levels were reached during the specified time.

Today’s NZD/USD Signals

Risk 0.50%

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

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.7374 or 0.7460.

  • Place 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 run.

Long Trades

  • Long entry following some bullish price action on the H1 time frame immediately upon the next touch of 0.7347 or 0.7273.

  • 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

Yesterday I took no strong directional bias over the short term, but I was interested in a possible long trade at the support below. Little has happened, and the support is still there. This pair looks more bullish than the AUD/USD, which is a bullish sign. However, we do have a new lower resistance level at 0.7374, and the price action over recent hours is looking bearish. The U.S. Dollar is also generally strong. For these reasons, a long trade looks unlikely to work well unless the conditions change. I think this pair is likely to give more profit from a good long trade than a good short trade, as the long-term condition is relatively bullish. There will probably be better opportunities in other currency pairs today.

NZDUSD

There is nothing 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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