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NZD/USD Forex Signal - 8 January 2019

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 ever reached.

Today’s NZD/USD Signals

Risk 0.75%.

Trades must be entered between 8am New York time and 5pm Tokyo time today only.

Short Trade

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6789.

  • 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 run.

Long Trades

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6726, 0.6677, or 0.6655.

  • 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 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

I wrote yesterday that as bullish momentum was still present, more so than we saw in the AUD/USD pair, so I took a bullish bias here as long as the price remains above 0.6725. This did not work out so well as although the price was above 0.6725 it did not rise much further and is a little lower now than it was 24 hours ago, albeit not by much. I am still broadly bullish, and I would take a bullish bias if we retraced to either 0.6726 or 0.6677 and got a strong bullish bounce at either one of those levels.
NZDUSDThere is nothing of high importance 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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