Selling the Pullback in NZD/USD
Skerdian Meta • 1 min read
Yesterday in the afternoon I went short on AUD/USD as this pair was retracing higher after the morning decline. That pair turned lower during the Asian session but not for too long and it is retracing back up now. Although, the retrace there is complete and the price is finding resistance at the 50 SMA on the H1 chart, so I think that it will turn bearish again soon.
NZD/USD has also been retracing higher this morning as the sentiment improves somewhat in the financial markets, which can be observed by the slightly bullish momentum in risk assets such as stock markets. So, the Kiwi, which is another risk asset, has been retracing higher but the retrace is almost complete now.
The stochastic indicator is almost overbought on the H1 chart as you can see above. When this hourly candlestick closes, I think that stochastic will be overbought. Besides that, the 50 SMA (yellow) and above that the 100 SMA (green) stand ready to provide resistance and turn this pair down again as they have been doing for the last two weeks.
So, we opened a sell signal here and now we’re waiting for the reversal to come.