Going Long NZD/USD
Skerdian Meta • 1 min read
During the first half of the day yesterday NZD/USD climbed more than 100 pips, specifically in the hours following the release of the US retail sales and inflation data.
But, in the evening after the FED hiked interest rates and delivered a somewhat hawkish statement, this forex pair lost all it had gained until then.
Other major currencies are still sliding this morning, such as EUR/USD or GBP/USD. They have lost around 50 pips in the last few hours, though NZD/USD is showing some resilience.
This forex pair is slightly lower than last night, but is still in a better position than other forex majors. So, that´s the reason we opened a buy forex signal here just a short while ago.
But that´s not the only reason for this signal. NZD/USD is finding support at the 100 SMA (green) on the H1 forex chart. That moving average had been providing support previously and it´s doing the same now.
Also, if we switch to the H4 chart, the 20 SMA (grey) is providing support here and the 50 SMA (yellow) is standing just below here, which is likely to add extra strength on the downside.
The trend is clearly up
The timeframe chart is almost oversold as well. That´s the 4th technical indicator pointing up, so it´s more than enough to trigger this forex trade.