NZD/USD Forms a Bullish Reversal Pattern at the Support Level - Forex News by FX Leaders
A bullish reversing pattern in NZD/USD

NZD/USD Forms a Bullish Reversal Pattern at the Support Level

Posted Wednesday, May 13, 2020 by
Skerdian Meta • 1 min read

Yesterday we opened a buy forex signal in NZD/USD , after this pair retraced lower to the 100 SMA (green) on the H4 chart. That moving average provided support and this pair bounced higher during the European session, so we booked profit on that signal.

Then the price started to reverse down as the USD was gaining strength. We decided to place a buy pending order at the 100 SMA again, which stood at 0.6050, hoping that this moving average would hold on once again and reverse NZD/USD up.

But, the pullback lower was deeper. NZD/USD broke below the 100 SMA as the USD attracted some more bids overnight, while the Reserve Bank of New Zealand held its meeting. It appears that the RBNZ statement was tilted to the dovish side, which is normal right now, although not as dovish as other major central banks, since New Zealand was largely untouched from coronavirus pandemic.

So, the decline stopped right at 0.66 for this pair and it started reversing higher during late Asian session. The price formed a doji candlestick as well, which is a bullish reversing signal after the decline and the current candlestick looks bullish, so the decline is over for this pair and now NZD/USD is heading higher. We will try to go long here, although we will wait for a slight retrace lower before buying.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of