NZDUSD testing major resistance, remain bearish
Sell below 0.7188. Stop loss at 0.7280. Take profit at 0.7041.
Reason for the trading strategy (technically):
Price is testing major resistance at 0.7188 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and a strong reaction could occur at this level to push price down to at least 0.7041 support (Fibonacci retracement, horizontal pullback support). However, we are also in a bullish ascending channel and only a break of this channel would confirm further downside move.
Stochastic (34,5,3) is seeing major resistance at 94% and also displays bearish divergence vs price signalling that a reversal is impending.
Reason for the trading strategy (technically):
Price is testing major resistance at 0.7188 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and a strong reaction could occur at this level to push price down to at least 0.7041 support (Fibonacci retracement, horizontal pullback support). However, we are also in a bullish ascending channel and only a break of this channel would confirm further downside move.
Stochastic (34,5,3) is seeing major resistance at 94% and also displays bearish divergence vs price signalling that a reversal is impending.