NZDUSD is testing its resistance where we expect to see a reversal.
Sell Below 0.7378. Stop loss at 0.7436. Take profit at 0.7261.
Reason for the trading strategy (technically):
NZDUSD is testing its resistance at 0.7378 (100% Fibonacci extension, 78.6% Fibonacci retracement), where we expect to see a reaction, causing price to drop to its support at 0.7261 (61.8% Fibonacci extension, 100% Fibonacci extension, 50% Fibonacci retracement, 61.8% Fibonacci retracement, horizontal overlap support). We do need to be cautious of the intermediate support at 0.7319 (61.8% Fibonacci extension, 100% Fibonacci extension, 50% Fibonacci retracement, 38.2% Fibonacci retracement, horizontal overlap support).
Stochastic (55, 5, 3) is approaching its resistance at 97% where we expect to see a corresponding reaction. Bearish divergence with price has also been identified which contributes to our bearish bias.
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