In the last two days, we took a beating in EUR/USD. This forex pair has been on a downtrend this week and we tried to place a couple of sell trades yesterday as EUR/USD was retracing higher. But the retrace turned into a sudden rally and this pair ended up more than 100 pips higher on the day.

The H1 chart is now overbought

So, this week’s trend was broken on EUR/USD but the downtrend in commodity currencies continues and it is pretty strong. They tried the upside for a few hours, but the attempt was weak and the upside was limited.

We tried another NZD/USD sell forex signal as this pair was making a retrace higher, after the one we had the day before. The 50 SMA (yellow) on the H4 chart capped the retrace and this pair turned back lower again.

This morning, we see this pair make another pullback higher as the USD goes through another phase of selling. The price is approaching the 50 SMA on the hourly chart and stochastic indicator is almost oversold.

We think that this climb in this pair is a good opportunity to open a sell forex signal and we did that just now. Our forex trades in NZD/USD have been quite successful after all, so why not stick to it?