The NZD/USD has been bullish since March, but this month the bullish momentum stalled, as it did in most other USD pairs. The currency pair pulled back around 200 pips lower during the first two weeks of September, although the NZD resisted better than the other pairs, during that pullback.

That was a sign that buyers are not done yet here. They came back by the middle of last week, after the Reserve Bank of Australia appears helpless with regard to doing anything about the strength of the AUD recently, which gave the AUD another push higher, pulling the NZD/USD up with it.

But, they couldn’t make new highs, and yesterday evening we saw another bearish reversal in this pair, because the FED didn’t sound as dovish as expected. The NZD/USD lost nearly 100 pips overnight, but retraced higher during the European session today. However, the 20 SMA (gray) and the 100 MA (green) have been providing resistance today and the pullback seems complete now, so we decided to take a shot and open a short-term sell signal from these MAs.