NZDUSD prepare to sell with break of major support
Sell below 0.7491. Stop loss at 0.7531. Take profit at 0.7405.
Reason for the trading strategy (technically):
Price has broken a major ascending support-turned-resistance line and we expect a strong drop from here. We prepare to sell below strong resistance at 0.7491 (Fibonacci retracement, horizontal overlap resistance, pullback resistance) for a push down all the way to 0.7405 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support).
RSI (34) is starting to see our support-turned-resistance line broken which would trigger a corresponding drop in price.
Correlation analysis: We are expecting commodities weakness with AUDUSD and NZDUSD both expecting drops.
Reason for the trading strategy (technically):
Price has broken a major ascending support-turned-resistance line and we expect a strong drop from here. We prepare to sell below strong resistance at 0.7491 (Fibonacci retracement, horizontal overlap resistance, pullback resistance) for a push down all the way to 0.7405 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support).
RSI (34) is starting to see our support-turned-resistance line broken which would trigger a corresponding drop in price.
Correlation analysis: We are expecting commodities weakness with AUDUSD and NZDUSD both expecting drops.