NZD/UD Remains Pretty Bearish
Skerdian Meta • 1 min read
NZD/USD turned bearish at the beginning of this year, after having retraced higher in the last three months of last year. But, good times ended with the end of Q4 in 2019 and once the new year began, the retrace higher ended and the price turned bearish.
NZD/USD has remained bearish since then, losing nearly 400 pips, as the tensions between US and Iran at first, then the coronavirus epidemic hurt the sentiment in financial markets. During this time, moving averages have turned into resistance and have reversed the price lower many times.
Last week, we saw the price retrace higher, but buyers gave up below 0.65 twice. The 100 SMA (green) also helped reverse the price down in the second occasion, as it was approaching. Today we saw another pullback higher, but the retrace ended at the 20 SMA (grey) this time. So, buyers continue to remain in charge on this pair as well, so pullbacks higher offer good opportunities to sell.