NZDUSD Forming Doji at Support, 50 SMA

18 lug 2014

One of my favorite technical patterns here on NZDUSD: today's candlestick is forming a dojo at a previously established support level, and has also bounced off the 50 SMA. Price is in an uptrend and has pulled back. I should note the candle hasn't closed yet, and price hasn't reached the 50% Fibonacci retracement from the recent swing low to swing high -- another preference of mine -- but I thought the signs were strong enough to warrant entering. I'm also seeing signs of NZD strength and USD weakness against other currencies, which I think also bodes well for this trade.

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