About an hour ago, we opened a sell forex signal in NZD/USD. It moved 15 pips above the entry price but now the price has turned back down and it is hanging around the 0.7045-55 region right now.

I know how I feel about this forex signal, but I just wanted you to ask yourself: how do you feel about this and why do you feel like that? Do you think it is going to end up in our favour or do you feel it is going in the opposite direction?

Judging by the current price action, I can see that a battle is taking place between buyers and sellers around these levels. The buyers have been in charge from the first hours of the morning, which is just a normal reaction since the NZD/USD sellers have closed some of their sell position from much higher up.

Now the sellers are returning again and the buyers are starting to have difficulties pushing any further up. So, the price action is one indicator in favour of our NZD/USD signal.

The other positive indicator for us is the 50 moving average on the H1 NZD/USD chart. If you look at this forex chart, you see the yellow 50 SMA just above the current price. It put a lid on this morning's move up and it looks strong enough to start a reversal.

The technical analysis points down 

Above there comes the 20 simple moving average on the H4 forex chart, which coincides with the 100 SMA on the H1 chart. These are two more indicators which can come to our rescue if the buyers decide to take the price further up. So, that makes it four technical indicators pointing down.

If you want more, I can add the strong downtrend of the past week, the stochastic indicator on the H1 chart being oversold, and the fact that this morning's march against the Buck has stalled. Most major forex currencies advanced against the USD this morning, but that seems to have stopped now and a reverse is starting to form. NZD/USD won't be an exception.

Now I lost count of the indicators which are in our favour, but you get the picture. The odds are greatly in favour of our NZD/USD signal, but there's always the risk of things going completely wrong. That's how this business works; there's nothing 100% sure here, so these indicators are all we got and we hope they do their job, but I feel confident about this signal.