Long in NZD/USD at the Same Technical Indicator

On Monday we opened a forex signal in NZD/USD. We bought this pair at the 50 SMA (yellow) on the hourly chart and it closed in profit yesterday during the latest upward move on this pair, which came as a result of some renewed USD weakness.

Today though, we see that this forex pair has completed another retrace down on the H1 chart. NZD/USD has pulled back lower this morning and it has now reached the 50 SMA again. This moving average has been a helpful indicator recently for this pair, so we thought of using it again for another trade.

The 50 SMA is providing another trading opportunity for us

We say the retrace is complete because the stochastic indicator is oversold on this timeframe chart. As we know, the stochastic is a good indicator to signal overbought and oversold levels. Now it is oversold, so ths pair is oversold.

Besides that, the last few candlesticks closed as dojis. Dojis are reversing signals after a retrace is complete, so we went long based on this chart setup. The Aussie has been more upbeat this morning, but AUD/USD is in the middle of a move higher and we like to pick retraces, so we picked NZD/USD. The retrace down in this pair is complete, now the uptrend is resuming.

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 See More
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
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers