Buying the Pullback in NZD/USD at the 100 SMA
[[NZD/USD]] has turned pretty bullish in the last two months, as I highlighted in one of my previous posts today, when I was analyzing the daily chart. This pair has had two reasons to turn bullish; first the weakness in the US economy which has hurt the USD and second, the improvement in the market sentiment due to the Phase One deal which is getting closer.
As a result, this pair has gained more than 350 pips from the bottom to the top. In fact, the NZD has been the most bullish among major currencies during the last two months. That has turned our bias bullish on this pair and we have been buying pullbacks in NZD/USD.
We missed a great opportunity to go long on this pair yesterday, when it retraced down to the 50 SMA (yellow) on the H1 chart. Although, we took the opportunity today to do so. This pair has retraced to the 50 SMA for the second time today, where it is finding resistance again. The pullback is complete, with stochastic overbought, so we decided to pull the trigger. Now, we are long on NZD/USD.
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