We decided to sell NZD/USD already. But, what indicators are signalling to us to sell?
How many reasons do you see on this chart for going short?
- For starters, since Wednesday when the Reserve Bank of New Zealand delivered some hawkish comments, this pair looks fundamentally bearish.
- The trend has been down over the last two weeks and there has only been one-way traffic during this time
- This morning´s move higher is just a retrace of the 2-week downtrend
- We´re below the 50 SMA (yellow) on the H1 chart which is supposed to provide some resistance in case we move higher
- The last 3 hourly candlesticks have formed 3 dojis, which are reversing indicators after an uptrend or after a retrace
- The stochastic indicator is overbought in the same time frame chart
Seven indicators pointing down should be enough for a forex trade to be successful. You can't know for sure how a trade will evolve when you trade forex, but these indicators are more than enough to open a trade. Now let´s see if the market agrees with our analysis.
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ABOUT THE AUTHOR
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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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