NZD/USD turned around by the middle of March, after it had fallen around 10 cents in the previous couple of weeks, as panic set in on the coronavirus breakout in Europe and markets turned to the USD. But, traders soon realized that this wasn’t going to be the end of the world and the sentiment improved.

This moving average provided some slight resistance for a coupe of weeks, but then buyers pushed the price above it and the 50 SMA turned from resistance into support. That was a sign that the trend had shifted and buyers were in control now on this pair.

They pushed above all other moving averages on the daily chart eventually, as this pair climbed 11 cents higher. But this week, we have seen a pullback lower and now NZD/USD is trading just above the 200 smoother moving average (grey) which is providing support for this pair. We opened a short term buy forex signal here last night, hoping for a bounce off the 200 SMA, so let’s see if the bounce will come.