NZD/USD has been quite resilient recently. This pair turned bullish in October, together with other risk assets, such as stock markets and the Aussie, due to the partial trade deal between US and China, which is still not official yet. Nonetheless, it helped improve the sentiment in financial markets and risk currencies rallied higher.

But, the sentiment turned negative again this month and AUD/USD turned bearish. Although, the Kiwi didn’t follow suit, having reversed higher again after retreating lower initially in the first week. The Reserve Bank of New Zealand held interest rates on hold at 1.00% in the last meeting, against anticipations of a 25bps cut, which helped the NZD as well.

So, NZD/USD has been reasonable bullish during the last two months, so we have turned bullish on it as well. Earlier today, this pair retraced lower on the H4 chart and we decided to take that opportunity and go long on this pair. The price was finding support at the 100 SMA (green) on the H4 chart, which has done so before, so we decided to buy there and are 10 pips in profit already now. So, this looks like a good trade and we will keep buying dips in this pair, as long as the sentiment remains bullish for the NZD.