The retrace higher seems complete on the H1 chart

Shorting NZD/USD Below the 100 SMA

Posted Monday, September 28, 2020 by
Skerdian Meta • 1 min read

[[NZD/USD]] turned quite bearish in the last two weeks, after being on a strong bullish trend since the middle of March. The price climbed more than 13 cents until September 20, when it reversed right below 0.68. Since then, NZD/USD has declined nearly 300 pips lower.

The USD stopped declining and seems to have found some strength now, while the sentiment for the commodity currencies has turned weaker, opposing to the strong bullish momentum we were seeing until 2 weeks ago. So, this pair turned bearish, but the decline stopped above 0.65 last Thursday.

The price retraced higher, but the retrace ended just below 0.66 last Friday and NZD/USD reversed lower. But we were seeing another retrace higher earlier today and we decided to take this opportunity to open a sell forex signal just below the 100 SMA (green) on the H1 chart. Now the price is reversing back down, so this trade seems alright at the moment.

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