The 50 SMA is waiting above to provide resistance

Shorting the Retrace in NZD/USD

Posted Wednesday, August 15, 2018 by
Skerdian Meta • 1 min read

Until yesterday, AUD/USD was the weakest of the commodity currencies, but the pickup in wages in Australia has discouraged some of AUD sellers. So, the NZD and the CAD have turned out to be the weakest com dolls today. The CAD took a hit from the large increase in US Oil inventories as well today.

We already have a sell forex signal in AUD/USD but we decided to take our chances on NZD/USD. We just opened a sell signal on this forex pair hoping to see it reverse back down and continue the downtrend. After all, retraces higher have been pretty weak for nearly a week so this already looks like the end of the retrace.

As you can see from the hourly chart above, NZD/USD is nearly oversold as the stochastic indicator approaches the top of the window. If history is to repeat itself as the chart suggests, this pair should reverse down pretty soon. The 50 SMA (yellow) stands right above the current price by a dozen pips, just in case the buyers continue to push higher. The 100 SMA is approaching fast as well, so it will add additional strength to the resistance.

 

 

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 is our 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
eToro announces a significant cut in spreads on cryptoassets to increase awareness of the potential of crypto and blockchain more broadly
SPONSORED
Comments

Leave a Reply

avatar
  Subscribe  
Notify of