NZDUSD Testing Resistance, Potential to Drop Further

NZDUSD Testing Resistance, Potential to Drop Further

NZDUSD is testing its resistance, we expect to see a further reversal.

Sell Below 0.7322. Stop loss at 0.7353. Take profit at 0.7247.

Reason for the trading strategy (technically):

NZDUSD is testing its resistance at 0.7322 (100% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement) where we expect to see a reversal, pushing price down to its support at 0.7247 (100% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement x2, 50% Fibonacci retracement, horizontal overlap support). We do have to be cautious of the intermediate support at 0.7272 (61.8% Fibonacci extension, 38.2% Fibonacci extension, 38.2% Fibonacci extension, horizontal overlap support). 

Stochastic (55, 5, 3) reversed nicely off its support at 97%. We have also identified a bearish divergence with price which contributes to our bearish bias.

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