NZD/USD Remains Well Supported at Smaller MAs

NZD/USD tried to retrace lower earlier today, but MAs continue to keep this pair supported

Skerdian Meta•Thursday, June 4, 2020•1 min read

[[NZD/USD]] made a bullish reversal by the middle of May, after trading inside a range for a couple of months. But, the USD started getting weaker in the last three weeks and this pair turned bullish, climbing around 500 pips higher up to the top since then.

As a result, NZD/USD reached 0.6440s, as the USD continues the retreat. During this time, moving averages have done a great job during pullbacks or consolidations, pushing the price higher. This week in particular has been increasingly bearish for the USD.

So, the 20 SMA (grey) has taken up that job since the beginning of this month, which shows that the upside pressure has increased for NZD/USD. A while ago we saw a slight pullback lower on this chart, but the 20 SMA held again, this time aided by the 50 SMA (yellow). So the decline stopped there and now the price is pulling back up. We will try to go long on NZD/USD if we see another pullback lower.

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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.