NZDUSD right on major resistance, look to short
Sell below 0.7283. Stop loss at 0.7349. Take profit at 0.7188.
Reason for the trading strategy (technically):
Price has since broken out of our descending channel but is testing key resistance at 0.7283 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension, bearish price action). We remain bearish for a further push down to at least 0.7188 support (Fibonacci retracement, horizontal pullback support) from here largely because RSI has not made a move above our 51% resistance level yet.
RSI (55) remains below our 51% resistance meaning we should maintain our bearish bias. It’s important to watch for the break above 51% to signal a possible recovery.
Reason for the trading strategy (technically):
Price has since broken out of our descending channel but is testing key resistance at 0.7283 (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension, bearish price action). We remain bearish for a further push down to at least 0.7188 support (Fibonacci retracement, horizontal pullback support) from here largely because RSI has not made a move above our 51% resistance level yet.
RSI (55) remains below our 51% resistance meaning we should maintain our bearish bias. It’s important to watch for the break above 51% to signal a possible recovery.