Buying the Pullback in NZD/USD

NZD/USD has turned even more bullish on Phase One deal, but it has pulled back lower now, where we decided to go long

Skerdian Meta•Friday, December 13, 2019•1 min read

NZD/USD has been bullish for more than two months. The sentiment improved in financial markets in September, after US and CHina dialed down their tones, following a heated summer. In October the sentiment improved further after comments regarding the Phase One deal.

Moving averages have been doing a great job, in supporting this pair during pullbacks, thus pushing the trend higher on the larger time-frames, such as the daily and H4 charts. Although, they have helped buyers on the H1 chart as well, as you can see from the chart above.

We have seen NZD/USD reverse higher at the 50 SMA (yellow), the 100 SMA (green) and earlier this week at the 200 SMA (purple). Yesterday the situation improved further for risk assets after Donald trump signed the Phase One deal, and the NZD surged higher.

But, we heard some rumours earlier today, which said that it meant that they were only postponing December tariffs, So the sentiment got dented a little and this pair retraced lower. But, we decided to buy the pullback, after Trump and China confirmed the deal, which should keep the sentiment positive. now, let’s hope for a reversal.

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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.