Selling NZD/USD at 50 SMA - Forex News by FX Leaders

Selling NZD/USD at 50 SMA

Posted Thursday, March 1, 2018 by
Skerdian Meta • 1 min read

In the midday brief that we posted earlier, we talked about opening a forex sell signal with the AUD/USD. The downtrend in this pair has accelerated and is going through a retracement period. Since the stochastic reached overbought levels while the 20 SMA provided support on the hourly chart, it all seems complete.

The same situation is going on with the NZD/USD. Commodity currencies move as a group and the chart setup looks similar thus we decided to go short on this forex pair.

As you can see from the NZD/USD chart below, the stochastic indicator became severely overbought several hours earlier and is hitting its head on the tip of the range.

50 SMA stopping the climb

While the 20 SMA (grey) is providing resistance on the AUD/USD, here the 50 SMA (yellow) is doing so and becoming a stronger technical indicator, to be honest. The bigger the moving average, the better it works.

We opened a forex sell signal with the NZD/USD and this trade is looking just fine. There was a small spike up, but the price returned below the 50 SMA again. The Euro and the AUD/USD are reversing lower, while the NZD/USD is stuck. Hopefully, this pair will make a move lower and join the rest.

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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.
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