Why Sell NZD/USD Now? - Forex News by FX Leaders

Why Sell NZD/USD Now?

Posted Monday, June 12, 2017 by
Skerdian Meta • 1 min read

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?

  1. A pullback is due – The uptrend has run its course for the time being, so a decent retrace is long due
  2. Buyers are losing confidence – The buyers don´t look as comfortable now and in the last few days we have been trading sideways
  3. 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  
  4. Overbought – The daily chart is severely overbought
  5. 50 SMA has turned into resistance – The 50 SMA (yellow) is providing resistance on the H1 chart
  6. 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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