NZD/USD has been trading on a solid uptrend over the past two months. During this time, it has gained approximately 600 pips, and there are no signs of it turning back.
The daily chart was overbought last week, however, the stochastic indicator retraced lower, as this Forex pair followed suit at the end of last week. Now, stochastic is turning up once again, and there remains to be a lot of space to run higher.
The 50 SMA has been the ultimate support during the uptrend
The 50 SMA
The H4 chart is looking much more bullish. As you can see from the image above, the uptrend is very clear. The 50 SMA (yellow) has been providing support on every dip, and has kept the uptrend in place during this time. We are now back at this moving average once again, and it’s looking like a good opportunity to open a buy Forex signal.
The Stochastic Indicator
The stochastic indicator is almost oversold, meaning that the retrace lower should conclude soon. Whenever stochastic has been oversold, or even nearly oversold, buyers have jumped in and taken the price higher.
We are now at the 50 SMA once again, and stochastic is almost oversold. This is looking like a good opportunity, although, the Aussie has been feeling quite weak for the last few trading sessions, and is affecting the NZD as well. The chart setup looks very tempting, so we may go long right now.