Seems Like Stars Have Aligned for NZD/USD to Make A Bullish Reversal
Skerdian Meta • 1 min read
Last week we decided to open a buy forex signal in NZD/USD . This pair has been bullish for more than two months, as the sentiment has improved in forex due to the US-China trade deal comments. The price retraced lower on Friday, after the jump late on Thursday, following the strong win by the Conservative in UK elections and the acceptance of Phase one deal from US and China.
The price was finding support at the 20 SMA (grey) on the chart above. On Monday, we saw a reversal higher and the price got pretty close to our take profit target, but it missed that target and reversed back down, breaking the 20 SMA, as well as the 50 SMA (yellow).
But, NZD/USD found support at the 100 SMA (green) on this chart and after sellers tried twice to break that moving average the price reversed higher. A doji was formed above the 50 SMA, which is a reversing signal and the following candlesticks look pretty bullish. So, the bullish reversal is already underway now, but it remains to be seen how far up buyers will push.