The 50 SMA Used to Be Support, Now Has Become Resistance - Forex News by FX Leaders

The 50 SMA Used to Be Support, Now Has Become Resistance

Posted Wednesday, January 17, 2018 by
Skerdian Meta • 1 min read

Beforehand, we had opened a sell signal on NZD/USD due to the fact that the price was slightly higher, and it currently seems that we made the right decision. A huge contributing factor to this signal was the 50 SMA (yellow), which provided solid support over the past few weeks. It has kept the uptrend stable, and on a few occasions has become resistance once the price moved below it.

The 50 SMA has turned into resistance now after providing support last week

Today, there was definitely a similar occurance.  The price has moved below the 50 SMA, as the USD is attempting to gain momentum. We had opened a sell signal here, however, the decline overnight took the price past the take profit target of that level.

Earlier today, the price reversed back up, and the 50 SMA provided resistance. This occured twice over the last couple of trading sessions, signifying that the price would find resistance here once again.

The stochastic indicator is already overbought, completing the upside move of today. The 100 SMA (green) is holding the decline for the moment, and will hopefully let go soon.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of