NZDUSD starting to drop, now testing major support
Sell below 0.7188. Stop loss at 0.7280. Take profit at 0.7041.
Reason for the trading strategy (technically):
Price is starting to drop nicely below our major resistance at 0.7188 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and we expect price to push down to at least 0.7041 support (Fibonacci retracement, horizontal pullback support). However, we are also in a bullish ascending channel and are testing the main channel support. Only a break of this channel would confirm further downside move.
RSI (34) is testing major ascending support and is starting to break below it. Only a clear break of our ascending support would trigger a strong bearish drop on price.
Reason for the trading strategy (technically):
Price is starting to drop nicely below our major resistance at 0.7188 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and we expect price to push down to at least 0.7041 support (Fibonacci retracement, horizontal pullback support). However, we are also in a bullish ascending channel and are testing the main channel support. Only a break of this channel would confirm further downside move.
RSI (34) is testing major ascending support and is starting to break below it. Only a clear break of our ascending support would trigger a strong bearish drop on price.