Bearish NZD/USD
1. The trend has been bearish for three weeks
2. The downtrend has picked up additional pace
3. The retrace higher is complete
4. The 50 SMA is scaring the buyers
5. Stochastic is overbought
6. The previous H1 candlestick closed as an upside-down hammer
The technical analysis looks pretty bearish to me. The downtrend is quite strong and it has picked up pace this week. Although, the price has retraced higher this morning on the back of some USD weakness. But the retrace up seems complete now because the stochastic indicator is overbought. Besides that, the 50 SMA is scaring the buyers away. The GDT auction is another added risk for the NZD and the traders don’t want to get caught on the wrong side by it. So, they are closing their buy trades that they opened this morning. We went short on this pair a while ago and that trade seems to be going well. The upside down hammer is a reversing signal and NZD/USD has already started to reverse lower.
1. The trend has been bearish for three weeks
2. The downtrend has picked up additional pace
3. The retrace higher is complete
4. The 50 SMA is scaring the buyers
5. Stochastic is overbought
6. The previous H1 candlestick closed as an upside-down hammer
The technical analysis looks pretty bearish to me. The downtrend is quite strong and it has picked up pace this week. Although, the price has retraced higher this morning on the back of some USD weakness. But the retrace up seems complete now because the stochastic indicator is overbought. Besides that, the 50 SMA is scaring the buyers away. The GDT auction is another added risk for the NZD and the traders don’t want to get caught on the wrong side by it. So, they are closing their buy trades that they opened this morning. We went short on this pair a while ago and that trade seems to be going well. The upside down hammer is a reversing signal and NZD/USD has already started to reverse lower.