Comparing NZD/USD and AUD/USD H1 Charts
Skerdian Meta • 2 min read
Yesterday we opened a sell forex signal in NZD/USD in the afternoon. This pair entered another phase of the downtrend as it slipped during the night yesterday. So, after the small retrace up in the afternoon, we decided to go short on this forex pair.
Let’s hope the downtrend continues in NZD/USD
As you can see on the NZD/USD H1 chart above, the buyers put up a fight in the afternoon after the swan dive in the first half of the day. This area around 0.6840-50 provided support a couple of times in November so it was likely that it turned into resistance now.
Besides that, the 20 SMA (grey) was quickly catching up with the price, which would have been another indicator pointing down. It did catch up and it provided resistance. The price reversed back down and we were about 20 pips in profit. It missed the take profit target of our forex signal during the night, but it’s still looking good as NZD/USD is turning lower right now.
AUD/USD is trying to make lower lows today
Yesterday, we were trying to decide whether to sell NZD/USD or AUD/USD and we decided to go for the Kiwi. The reason for that was the fact that the retrace in AUD/USD was small and I thought buyers may push higher to complete it, so we picked NZD/USD. The retrace looked over in this pair since the stochastic indicator was almost overbought.
Although today, AUD/USD looks more bearish than NZD/USD. The retrace that took place in these two forex pairs last night was considerably bigger in the latter. Had we taken the opportunity in AUD/USD instead of NZD/USD, we’d be more than 20 pips in profit now.
Instead, our forex signal is only about 10 pips in profit. Anyhow, a profit is a profit and the price is still moving down, so we’ll likely get our pips from this forex signal today, so hang on.