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.

Put your trading knowledge into action. Create a trading account now.

Disclaimer: The publication of Analytics is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. The Analytics is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the Analytics. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its Analytics.