Selling the Pullback in NZD/USD at the 20 SMA - Forex News by FX Leaders
The retrace seems complete now on the H4 chart

Selling the Pullback in NZD/USD at the 20 SMA

Posted Monday, March 2, 2020 by
Skerdian Meta • 1 min read

NZD/USD has been on a bearish trend since the beginning of this year. In fact, the trend has been bearish for a couple of years now, but in Q4 of last year, we saw a retrace higher as China and the US were heading for a partial trade deal. During the retrace higher, moving averages were providing support on the H4 chart.

But, once the price reversed down and moved below moving averages, these MAs turned into resistance. The larger MAs such as the 100 SMA (green) has provided resistance when the pullbacks were decent. When the trend has picked up pace, the smaller MAs have taken up that job.

The coronavirus outbreak has hurt the sentiment considerably and risk assets, such as commodity currencies have been declining. Although, we are seeing a pullback higher today, but buyers are having trouble pushing above the 20 SMA on H4 chart. We decided to sell this pullback, since it already looks complete and the sentiment continues to remain negative. So, we are short on NZD/USD now and waiting for the bearish trend to resume.

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About the author

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.
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