NZDUSD testing major support, watch to sell on the break
Sell below 07283. Stop loss at 0.7349. Take profit at 0.7188.
Reason for the trading strategy (technically):
Price is now testing major support at 0.7283 (Fibonacci retracement, horizontal swing low support) and only a break of this level would trigger a bearish move to 0.7188 support (Fibonacci retracement, horizontal pullback support).
It is worth noting that we can see price break out of our bearish channel triggering a bearish exit. Confirmation of the drop requires price to close below 0.7283.
RSI (34) sees a bearish exit of our long term ascending support-turned-resistance line and also a break below our 51% support signalling a big drop from here.
Reason for the trading strategy (technically):
Price is now testing major support at 0.7283 (Fibonacci retracement, horizontal swing low support) and only a break of this level would trigger a bearish move to 0.7188 support (Fibonacci retracement, horizontal pullback support).
It is worth noting that we can see price break out of our bearish channel triggering a bearish exit. Confirmation of the drop requires price to close below 0.7283.
RSI (34) sees a bearish exit of our long term ascending support-turned-resistance line and also a break below our 51% support signalling a big drop from here.