NZDUSD major support broken, time to start selling
Sell below 0.7423. Stop loss at 0.7461. Take profit at 0.7332.
Reason for the trading strategy (technically):
Price has finally properly broken our key support level at 0.7423 (Fibonacci retracement, horizontal overlap support) and we plan to sell below this level for a push down to at least 0.7332 support (Fibonacci retracement, horizontal swing low support).
Stochastic (55,5,3) has broken our ascending support-turned-resistance line signalling that a drop is expected.
Correlation analysis: AUDUSD and NZDUSD are both positively correlated. So it is good to see a drop on NZDUSD and AUDUSD as that increases our conviction on this trade.
Reason for the trading strategy (technically):
Price has finally properly broken our key support level at 0.7423 (Fibonacci retracement, horizontal overlap support) and we plan to sell below this level for a push down to at least 0.7332 support (Fibonacci retracement, horizontal swing low support).
Stochastic (55,5,3) has broken our ascending support-turned-resistance line signalling that a drop is expected.
Correlation analysis: AUDUSD and NZDUSD are both positively correlated. So it is good to see a drop on NZDUSD and AUDUSD as that increases our conviction on this trade.