After opening a sell forex signal in EUR/USD earlier, we spotted another good trading opportunity, this time in NZD/USD. This pair used to be quite bullish for about a year, like EUR/USD, climbing around 19 cents from the bottom to the top.
But, it made a swift reversal in the last week of February, turning around at 0.7460s. It fell more than 250 pips, as the USD turned bullish during this time. But, the decline stalled at the previous support area around 0.71.
The price bounced around 80 pips higher, but buyers ran into the 20 SMA (gray) on the H4 chart, just like in EUR/USD. So, we decided to take another trade, selling NZD/USD as it was being rejected by the 20 SMA. The price has started to reverse back down now, so this looks like a good position.