NZD/USD Bounces Off the 100 SMA as the Sentiment Improves
NZD/USD retraced lower last night, but the retrace was pretty weak and this pair bounced off the 100 SMA
The Kiwi has been bearish for a long time, but the situation changed after the Reserve Bank of New Zealand left interest rates unchanged at 1.00%, while markets were expecting another 25 bps rate cut. NZD/USD jumped nearly 100 pips higher and since then this pair has been bullish.
Yesterday, the sentiment turned negative again after comments from China that they feel pessimistic regarding the trade deal. The Aussie turned pretty bearish after that, but NZD/USD held pretty well despite a minor pullback, which shows that the sentiment is bullish for this pair right now.
NZD/USD retraced lower during early Asian session. But the retrace ended at the 100 SMA (red) on the H1 chart. That moving average provided support and the price eventually bounced off the 100 SMA.
Now, NZD/USD is challenging last week’s high, so the momentum is pretty bullish here. We lost that opportunity to go long last night after the retrace, but will follow the price action closely when we see another pullback, so we can go long on this pair.
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