A while ago we opened a sell forex signal in NZD/USD. The bigger trend is up in this forex pair, so why are we trading in the opposite side?
- A pullback is due – The uptrend has run its course for the time being, so a decent retrace is long due
- Buyers are losing confidence – The buyers don´t look as comfortable now and in the last few days we have been trading sideways
- 20 SMA is providing resistance – The price dived below the 20 SMA on the H4 forex chart as you can see , which is now providing support on the top side
- Overbought – The daily chart is severely overbought
- 50 SMA has turned into resistance – The 50 SMA (yellow) is providing resistance on the H1 chart
- The last two hourly candlesticks have formed a bearish pattern
The last few candlesticks have formed a bearish pattern
As you can see, there are many technical indicators which are pointing down at the moment, that´s why we decided to open a short term sell signal. There is plenty of space on the downside, so hopefully we´ll get our pips.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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