More Trade Setups? Time for NZD/USD
Skerdian Meta • 1 min read
Since we began with trade setups today, we´ll continue with another interesting setup in NZD/USD. We just opened a buy forex signal here so let´s take a look.
For starters, NZD/USD is looking a lot better than AUD/USD. AUD/USD has lost around 50 pips this morning while NZD/USD has only lost around 20-25 pips.
This sort of price action tells us that the Kiwi is holding up much better than the Aussie. When the tide turns, NZD/USD is more likely to climb faster than other commodity Dollars.
A fundamental reason for this forex trade is the fact that the Buck resumed its downtrend last Friday after the soft US inflation (CPI) numbers. That makes this morning´s USD advance more of a retrace before the next move lower (higher in NZD/USD), if that ends up happening
The technical setup is clearer on the H1 forex chart, which is why we made the decision to buy this pair now.
Hopefully, the 50 SMA will put an end to this retrace lower
As you can see from the image above, the H1 chart is oversold with stochastic near the bottom of the range. Additionally, the previous H1 candlestick formed a doji, which is a reversing signal. That makes our total of upward pointing technical indicators pointing upward two.
The H4 chart shows this forex pair heading down, but the daily chart is pointing strongly up, so they balance each other out. We went long because the market seems pretty quiet today and there isn´t any economic data coming up, forcing us to be patient with our forex trades today.